SOCIAL DISCOUNT RATES FROM STRATOSPHERIC OZONE CONTROL

We develop a model of optimal project timing to infer the discount rat e US residents attach to investments in stratospheric ozone presentati on. In this model, the calendar date at which preservation-related ben efits offset costs is shown to be an increasing function of the real s ocial rate of time preference. Estimates of US costs and benefits asso ciated with the original (1987) Montreal Protocol are used to determin e a range of discount rates from the US control of stratospheric ozone depletion. From this example the range is about 3.0 to 8.77 per cent.