Ethical Assumptions in Long-Term Policy
Imagine a government is considering a multi-trillion dollar project to build a planetary defense system against a large asteroid predicted to be on a collision course with Earth in 200 years. Two distinct arguments emerge during the debate:
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Argument 1: 'We must act now and bear the full cost. The well-being of a person living in 200 years is no less important than the well-being of a person living today. It would be unethical to devalue their safety simply because they exist in the future.'
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Argument 2: 'A project of this scale would cripple our current economy and reduce well-being for the present generation. It is natural for societies to prioritize more immediate concerns. While the future threat is real, it is not reasonable to ask the current generation to make such an extreme sacrifice for a benefit that is so far away.'
Analyze the fundamental ethical disagreement about intergenerational value that underlies these two arguments. Explain precisely how each ethical position leads to its respective conclusion about whether to fund the project.
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Nordhaus's Method for Quantifying Intrinsic Impatience
Two economists are debating how to value future climate change damages within a cost-benefit analysis.
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Economist A argues: 'The well-being of a person living 100 years from now is just as intrinsically valuable as the well-being of a person living today. Our calculations should not devalue future welfare simply because it occurs later in time.'
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Economist B argues: 'Policy should reflect human nature. Individuals are inherently impatient, preferring benefits now rather than later. This same preference should be applied to society as a whole, meaning we should give less weight to the well-being of generations that are far in the future.'
What is the fundamental ethical disagreement that distinguishes these two positions?
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The Ethical Core of Discounting
Ethical Frameworks in Project Evaluation
An economist argues that when evaluating long-term policies, such as those addressing climate change, it is necessary to apply a discount rate that reflects the 'intrinsic impatience' observed in human behavior, where individuals value present consumption more than future consumption. Which of the following statements represents an ethical viewpoint that this economist would necessarily reject?
Match each ethical framework or principle related to intergenerational discounting with its corresponding description.
Ethical Assumptions in Long-Term Policy
A policymaker evaluating a long-term environmental project states: 'From an ethical standpoint, the well-being of a person born 100 years from now is as important as the well-being of a person today. We should not systematically devalue their welfare simply due to the passage of time.' Which of the following approaches to calculating the project's net present value is most consistent with this ethical principle?
An economic advisor suggests that when a government evaluates a 200-year infrastructure project, it should use a discount rate that includes a component for 'pure time preference.' What is the most likely ethical justification for this recommendation?
Contrasting Ethical Views on Intergenerational Value