Differences Between Private and Social
There are a number of qualitative differences between social and corporate discount rates and evaluation of projects associated with them. The governance of social project funding is different naturally, because estimating the benefits of social projects requires making ethically subtle choices about the benefits to others. For example if it was presumed that a meteor will wipe out all life in a few years the SDR is very high. Alternately if we presume that the population will have many new and wonderful choices capturing benefits (i.e. they will be more wealthy) in the future that too raises the SDR of creating any given benefit. For example, choices about the SDR of environmental protection projects, such as funding the reduction of global warming, place a greater valuation on future generations.
Read more about this topic: Social Discount Rate
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