Choosing the discount rate in cost benefit analysis

Research Project

Background

In response to the Australian Government's commitment to the use of cost-benefit analysis to assess regulatory proposals, the Office of Best Practice Regulation (OBPR) has a Cost-Benefit Analysis Unit that will provide technical assistance and training to government departments and agencies on economic techniques to calculate the benefits and costs of proposals.

Objectives of the Study

To provide an analytical framework and a set of recommendations to determine the appropriate discount rate to use in cost-benefit analysis.