Erhun Kula

Future generations: the modified discounting method

The application of recently established modified discounting method, MDM, will have a dramatic impact on the selection of public sector projects. A portfolio constructed by means of the MDM will most certainly contain more long-term projects than those selected by using the ordinary discounting in criteria such as the net present value, the internal rate of return (normalised or otherwise) the benefit cost ratio and the shadow price algorithm. This paper provides a modified discountfactor matrix for the United Kingdom for social interest rates 1–15%.

Islam and environmental conservation

Over thirty years ago a debate began as to whether religion in general, or the Judaeo-Christian faith in particular, were in some sense responsible for the present environmental predicament. Islam, as a major world religion which shares the same Abrahamic roots as the Judaeo-Christian tradition, has been largely absent from this debate. Most conservationists now believe that it is essential that there be comprehensive discussion not only of environmental policies, but also of the ethics underlying environmental protection. This paper looks at the importance of the environment in the main sources of Islamic instruction, namely the Koran and Prophets Hadiths (teachings). These texts turn out to be on the side of conservation, the emphasis being on respect for creation, the protection of the natural order and avoidance of all wasteful activities which may cause injury to the environment. These positions are contrasted with views expressed by political Islam, which has become influential in a large part of the Muslim world and rejects the conservation measures advocated by Western writers.

The inadequacy of the entitlement approach to explain and remedy famines

(1988). The inadequacy of the entitlement approach to explain and remedy famines. The Journal of Development Studies: Vol. 25, No. 1, pp. 112-116.

Social interest rate for public sector appraisal in the United Kingdom, the United States and Canada

The social interest rate (SIR) is an important parameter in project appraisal in public sector economics. In this article a SIR is derived for the United Kingdom, the United States and Canada on the basis of an individualistic and two-period consumption utility function. The model yields an operational formula the component parameters of which are: a mortality based pure time discount rate; the growth rate of per capita consumption, in real terms; and the elasticity of marginal utility of consumption. The final results are: the United Kingdom 2.6%, the United States 5.3% and Canada 5.4%.

The analysis of social interest rate in Trinidad and Tobago

In this article a Social Interest Rate (SIR) is derived for Trinidad and Tobago on the basis of an individualistic, independent and multi‐period consumption utility function. The component parameters of this rate are: a mortality‐based pure time discount rate, the growth rate of per capita real consumption and the elasticity of marginal utility of consumption. The final result is 6.2 per cent which is plausible and thus can be readily used by economic planners in various resource allocation policies in that country.

Health cost of a nuclear waste repository, WIPP

The Waste Isolation Pilot Plant (WIPP), the United States of America’s first nuclear waste dumping site, has over the years generated a great deal of concern and controversy. The most sensitive aspect of this project is that it may impose serious health risks on future generations. The first leg of this project is about to be completed and at the time of writing the Department of Energy is planning to perform experiments with a small quantity of waste for operational demonstrations. If everything goes well, then towards the end of this decade large quantities of wastes will be transported to the site for disposal. This article reconsiders the health cost of this project from an economic perspective in light of recent developments in the field of social discounting. As in earlier studies, two cases of health risks are considered: total cancer and genetic deformity over a one million year cutoff period. The analysis shows that whereas ordinary discounting method wipes out the future health detriments, expressed in monetary terms, the modified discounting criterion retains a substantial proportion of such costs in economic analysis.

Islam and Utilisation Policies for Environmental Resources

During the last three decades or so academics from a variety of disciplines have been taking part in a wide range of outlets to explore whether religion in general, and Judaeo-Christian faith in particular is really responsible for the misuse of environmental resources. Unfortunately, Islam, as a major World religion, has been largely absent from these debates. This paper looks at the importance of nature in the main sources of Islamic instruction with a view to finding out about the importance of good environmental conduct in Muslim countries where the pressure on environmental resources has been growing.

Book Review: Friedrich Hayek: A Biography

Alan Ebenstein, Friedrich Hayek: A Biography, March 2001, Palgrave for St Martin’s Press, London. £29.95, 320 pages (hardback).

Traditional Indian concept of time and its economic consequences: where is the hard evidence?

In contrast with Indian classical tradition which denigrates time as mere illusion, Islam treats time as real. This paper compares Indias economic performance with her Muslim neighbours, Pakistan and Bangladesh, where time is considered to be a scarce and precious resource. Results show that, despite vast differences in attitude towards time in Hindu and Muslim traditions, the economic performance of these countries does not differ much.

Turkey and Europe in a Historic Context

Despite well advanced negotiations in the European Union regarding the full Turkish membership recently some powerful European politicians as well as others have expressed reservations about it which came as a shock to many in Europe and beyond. Turkey started negotiations with the EU in 1959 (has been the only non-member country with a customs union) and is still waiting to become a full member. The main argument of the opposing politicians appears to be that Turkey is not really a European country. This paper looks at the history of Europe and Turkey and concludes that the two are inseparably linked. Some politicians see the European Union as a Christian club and thus the spiritual disposition of the Turks appears to be the real problem for them.