Mostly unknown outside academic circles, the social discount rate (SDR) is vital for understanding the value of infrastructure investments far into the future. But if that’s especially relevant in a world threatened by climate change, governments and economists have long argued exactly what discount rate to use, or if a fixed rate is even necessary. Economists Christian Gollier, Frederick van der Ploeg and Jiakun Zheng recently developed a major survey to gauge opinion on the SDR across their profession. Between the theoretical importance of project-specific discount rates, and a reluctance to tweak rates in practice, their findings are worth exploring – especially once you consider the need to expand the debate beyond economics.
Can mining influence the way in which we identify ourselves? According to economists Nicolas Berman, Mathieu Couttenier and Victoire Girard, mining in Africa may intensify feelings of ethnic belonging, by generating feelings of deprivation among the local population. Mining could therefore help explain ethnic fragmentation and certain conflicts observed in Sub-Saharan Africa.