Society, Sustainability and Environment- ENVR-201- 051
November 5th, 2012
Discounting and Multi-criteria Analysis
Is a part of CBA which prioritizes values to maximize intertemporal welfare
The minimum rate of return that makes a project socially desirable to implement
eg: $100 of benefits today vs $100 of benefits in the future (which will amount to more)
Essentially assigns a price to time
You can have positive (future worth less), 0 or negative discount (future is more) rates
Net Present Value = present money value / (1+discount rate)^nyears
Complex systems can not be captured by a single perspective or dimension
Different scales for analyzing a hierarchy indicates non-equivalent descriptions
A range of values, perspectives, and dimensions must be considered
Post-normal science is used when issues are pressing but facts are uncertain
Why is there a conflict?
Which alternatives exist?
-Evaluate alternatives through history, institutions, and participatory consultation
Which system dimensions can be affected?
-Structure information and data (hierarchal scales and systems dimensions)
How can alternatives be evaluated?
-Participation by citizens to select criteria and evaluate alternatives
What does transparency mean?
-Diffusing results (citizens’ meeting, school visits, international symposium etc)
Economic, social and environmental dimensions must be taken into consideration
Political and economic democracy, as well as sustainability, must be worked towards
Current CBA methods are insuf