Intergenerational Equity and Resource Use

Abstract . Is it “fair” for one generation to use up, wholly or to a degree, resources which cannot be replaced? By evaluating projects involving non-replaceable resources with discount rates are future benefits undervalued?Discounted net present value is found to be a poor allocator of scarce resources. Another choice rule, Page and Ferejohn's Dominance Rule, also contains flaws. A “partitioned” approach, dividing the time horizon into sections, is an improvement and has advantages. While this third approach has basic uncertainties, it may be used to meet nondeferrable decisions while problems of equity and preference are being studied.