Research on Social Profitability Threshold of China Intercity Railway Based on Passenger Demand

2014 ◽  
Vol 590 ◽  
pp. 901-905
Author(s):  
Tian Tian Gan ◽  
Ke Qi Wu ◽  
Ji Meng Tang
Keyword(s):  
Discount Rate ◽  
Costs And Benefits ◽  
Social Discount Rate ◽  
Minimum Level ◽  
Regional Economic ◽  
Passenger Demand ◽  
Economic Level ◽  
Similar Line ◽  
Intercity Railway ◽  
Transport Modes

The paper discussed the minimum level of passenger demand which could make intercity railway project social profitability in China. The analysis of the costs and benefits linked to other alternative transport modes has been taken into account. The results show that the intercity railway studied is socially profitable with a demand of 4.07 million passengers and a social discount rate of 7%, and the conclusion also applies to other intercity railways in China with similar line conditions and regional economic level.

scholarly journals DOES A DISCOUNT RATE MEASURE THE COSTS OF CLIMATE CHANGE?

2017 ◽  
Vol 33 (3) ◽  
pp. 337-365 ◽  
Author(s):  
Christian Tarsney
Keyword(s):  
Discount Rate ◽  
Time Preference ◽  
Marginal Utility ◽  
Costs And Benefits ◽  
Social Discount Rate ◽  
Time Horizons ◽  
Rate Measure ◽  
Long Time ◽  
Diminishing Marginal Utility ◽  
Normative Considerations

Abstract:I argue that the use of a social discount rate to assess the consequences of climate policy is unhelpful and misleading. I consider two lines of justification for discounting: (i) ethical arguments for a ‘pure rate of time preference’ and (ii) economic arguments that take time as a proxy for economic growth and the diminishing marginal utility of consumption. In both cases I conclude that, given the long time horizons, distinctive uncertainties, and particular costs and benefits at stake in the climate context, discount rates are at best a poor proxy for the normative considerations they are meant to represent.

scholarly journals A Review of Approaches to Construct Social Discount Rate

2016 ◽  
Vol 8 (4-3) ◽  
Author(s):  
Ai-Jiun Chua ◽  
Weng-Wai Choong
Keyword(s):  
Discount Rate ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Social Costs ◽  
Benefit Analysis ◽  
Costs And Benefits ◽  
Social Discount Rate ◽  
Public Projects ◽  
The Social ◽  
Social Costs And Benefits

There is increasing concern on how public projects are being evaluated especially for public projects that bring impacts towards the economic, social and environmental of the nation in the long-term, for example infrastructural, environmental protection, energy efficiency, healthcare, education expenditures and others. Thus, the federal government and state government recommend project assessors to adopt cost-benefit analysis for major infrastructure and social investment as well as for regulatory initiatives. Cost benefit analysis has been widely used as a tool to enable stakeholders to make a better decision for projects by systematically comparing the social costs and benefits with the emphasis on valuing them in monetary term. One of the most significant parameters for cost benefit analysis is the social discount rate. It is a rate that used to convert the future social costs and benefits into present value. However, there is a long-time debate on how to construct appropriate social discount rate. Literature reveals that there are various popular approaches to construct social discount rate, such as Social Time Preference (STP) approach, Social Opportunity Cost of Capital (SOC), and Shadow Price of Capital (SPC). The selection of approaches is a significant process to construct an appropriate social discount rate for the project. In this paper, author examines theoretical for each approach and procedures to construct social discount rate. A framework will be developed to guide the assessor in selecting the approaches to construct social discount rate. This paper intends to review social discount rate construction approaches and the pros and cons of each approach. The paper would provide insight to assessor in selecting the approach in construction social discount rate. 

scholarly journals Discounting Disentangled

2018 ◽  
Vol 10 (4) ◽  
pp. 109-134 ◽  
Author(s):  
Moritz A. Drupp ◽  
Mark C. Freeman ◽  
Ben Groom ◽  
Frikk Nesje
Keyword(s):  
Discount Rate ◽  
Time Preference ◽  
Wealth Effect ◽  
Social Discount Rate ◽  
Economic Values ◽  
Public Projects ◽  
Highly Sensitive ◽  
The Social ◽  
Ramsey Rule

The economic values of investing in long-term public projects are highly sensitive to the social discount rate (SDR). We surveyed over 200 experts to disentangle disagreement on the risk-free SDR into its component parts, including pure time preference, the wealth effect, and return to capital. We show that the majority of experts do not follow the simple Ramsey Rule, a widely used theoretical discounting framework, when recommending SDRs. Despite disagreement on discounting procedures and point values, we obtain a surprising degree of consensus among experts, with more than three-quarters finding the median risk-free SDR of 2 percent acceptable. (JEL C83, D61, D82, H43, Q58)

scholarly journals A time preference measure of the social discount rate for Iran

2018 ◽  
Vol 7 (1) ◽  
Author(s):  
Arian Daneshmand ◽  
Esfandiar Jahangard ◽  
Mahnoush Abdollah-Milani
Keyword(s):  
Discount Rate ◽  
Time Preference ◽  
Social Discount Rate ◽  
The Social ◽  
Preference Measure

On a social discount rate for forestry: Comment

1987 ◽  
Vol 17 (11) ◽  
pp. 1472-1473
Author(s):  
Colin Price
Keyword(s):  
Discount Rate ◽  
Social Discount Rate

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