Justice and Efficiency with the Sum of Discounted Consumption Flows Method
- 1 June 1984
- journal article
- Published by SAGE Publications in Environment and Planning A: Economy and Space
- Vol. 16 (6) , 835-838
- https://doi.org/10.1068/a160835
Abstract
In an attempt to criticise the recently established public sector investment evaluation method, which is known as the sum of discounted consumption flows, Price makes a number of points. First, the method may yield perplexing results in practice, especially in forestry investments; second, it tends to discriminate against present generations; third, the method yields less-efficient results than the net present value criterion. All of these points are based on superficial analyses for which counterarguments are presented in the text to clarify the situation.Keywords
This publication has 3 references indexed in Scilit:
- The Sum of Discounted Consumption Flows Method: Equity with Efficiency?Environment and Planning A: Economy and Space, 1984
- Discount Factors for Public Sector Investment Projects Using the Sum of Discounted Consumption Flows—Estimates for the United KingdomEnvironment and Planning A: Economy and Space, 1984
- Future Generations and Discounting Rules in Public Sector Investment AppraisalEnvironment and Planning A: Economy and Space, 1981