Intergenerational Ethics and Economic Discounting
Economic models for long-term policies, such as those addressing climate change, often use a 'discount rate' to compare costs and benefits across different time periods. One justification for this practice is based on the psychological observation that individuals typically value their own present consumption more than their own future consumption. Critically evaluate the ethical argument for applying this principle of individual time preference to justify valuing the well-being of the current generation more than the well-being of future generations. In your answer, explain the core of the ethical objection to this line of reasoning.
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The Market for Votes
An economic model for long-term climate policy incorporates a 'discount rate' to weigh the welfare of future generations against present-day costs. A component of this rate is justified by the observation that individuals generally prefer immediate gratification over future rewards, a tendency known as 'intrinsic impatience'. Which of the following statements presents the most significant ethical objection to using this individual tendency as a basis for the policy's discount rate?
Ethical Basis for Intergenerational Discounting
The ethical justification for applying a discount rate based on 'intrinsic impatience' to long-term climate policy rests on the principle that since individuals value their own present well-being more than their own future well-being, it is logical to extend this preference to value the well-being of the current generation more than that of future generations.
The ethical justification for applying a discount rate based on 'intrinsic impatience' to long-term climate policy rests on the principle that since individuals value their own present well-being more than their own future well-being, it is logical to extend this preference to value the well-being of the current generation more than that of future generations.
Intergenerational Ethics and Economic Discounting
Match each component of the argument regarding intergenerational discounting with its correct description.
An economic advisor makes the following argument for a long-term environmental policy: 'We observe that individuals, when making personal financial decisions, tend to value immediate benefits more than future benefits. This observed human tendency should be the basis for our public policy, meaning we should place a lower value on the well-being of future generations than on our own.' Which statement best identifies the logical leap in this reasoning that is the primary target of ethical criticism?
The Centennial Bridge Debate
A city planner argues against building a long-term flood defense system by stating, 'Market interest rates show that individuals value their own present comfort far more than their own comfort 30 years from now. Therefore, as a matter of policy, we should value the well-being of our generation far more than the well-being of a generation 100 years from now.' What is the fundamental ethical flaw in this line of reasoning?