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The Opportunity Cost Argument for Discounting

Environmental Policy
Green Politics
Political theory
Dominic Roser
University of Oxford
Dominic Roser
University of Oxford

Abstract

It is often not sufficiently appreciated how weak the presuppositions of the Opportunity Cost Argument (OCA) for Discounting are. In particular -- and in contrast to other arguments for discounting -- the OCA is less tied to a moral outlook of a consequentialist stripe. I will briefly sketch some premises that are and are not presupposed by the OCA (as they are presented in Meyer and Roser 2012) and will then focus on a number of controversial steps in this reasoning. These include: the definition of discounting; how a requirement to act efficiently can be justified in non-consequentialist outlooks; the relevance of individual saving decisions counteracting governmental saving decisions; the implications for economic methodology; and the relevance of natural resources becoming scarcer over time.