Natural environments and the social rate of discount

In recent years environmental concerns have given rise to a discussion of the appropriate discount rate to use in project appraisal to allow for the interests of future generations. This paper argues that the environmental critique of discounting is not persuasive, that arguments for adjusting discount rates do contain persuasive elements, but adjusting discount rates is a clumsy way of handling these legitimate concerns. Introducing sustain-ability criteria into cost-benefit is a better course to follow since otherwise too heavy a burden is placed on the discount rate.