Green Book supplementary guidance: discounting
Supplementary guidance to the Green Book on intergenerational wealth transfers and social discounting.
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The Green Book recommends that costs and benefits occurring in the first 30 years of a programme, project or policy be discounted at an annual rate of 3.5%, and recommends a schedule of declining discount rates thereafter.
When assessing proposals where the effects involve the very long term (in excess of 50 years) and involve very substantial and, for all practical purposes, irreversible wealth transfers between generations, this additional guidance is to be followed.