Podcast: Our review of the Treasury’s Social Discount Rate

The Treasury’s decision to lower its social discount rate from 3.5% to 3% will impact on all future government policies, from transport infrastructure to the building of new hospitals.

It means more consideration will be given to future generations’ wellbeing in cost-benefit analyses, with greater importance placed on projects with long-term benefits such as long-lasting infrastructure, and more weight placed on the future environmental impact of infrastructure projects initiated now.

It comes following a Treasury-commissioned review that was co-authored by Exeter economist Professor Ben Groom. Professor Groom explained the review’s recommendations and the rationale behind them at an event marking the 10th anniversary of the University of Exeter Business School’s Land, Environment, Economics and Policy Institute.