TAILIEUCHUNG - CORPORATE WATER ACCOUNTING: An Analysis of Methods and Tools for Measuring Water Use and Its Impacts

We find that dynamically consistent (exponential) impatience cannot explain the magnitude of the decline. The model needs either an implausibly large degree of annual impatience, or a very large intertemporal elasticity of substitution. Intuitively, the problem arises because the exponential discount rate is constant over time:1 even a mild degree of short-run discounting, say a daily discount rate of 1 percent, implies a daily discount factor of and thus an annual discount factor of = . This is far below estimates of annual discounting in the literature, and implies that the consumer values consumption today 97 percent more than consumption in one year, which seems highly. | corporate water _ ACCOUNTING An Analysis of Methods and Tools for Measuring Water Use and Its Impacts UNEP The CEO Water Mandate Authors Jason Morrison and Peter Schulte Pacific Institute Oakland California USA Rita Schenck Institute for Environmental Research and Education Vashon Washington USA Acknowledgements The authors would like to recognize and thank the members of the Research Advisory Committee RAC for their invaluable insights and contributions throughout the development of this report. A full list of RAC members can be found in Appendix A. We also wish to thank others who helped develop and review this report including representatives from endorsing companies of the CEO Water Mandate representatives from various civil society organizations and staff of the Pacific Institute who provided valuable insight and editing suggestions. Disclaimer The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the United Nations Environment Programme concerning the legal status of any country territory city or area or of its authorities or concerning delimitation of its frontiers or boundaries. Moreover the views expressed do not necessarily represent the decision or the stated policy of the United Nations Environment Programme nor does citing of trade names or commercial processes constitute endorsement. All of the opinions expressed in this report are those of the authors and do not necessarily reflect the views of the AC the UN Global Compact the CEO Water Mandate its endorsing companies or any other individual or organization that provided comments on earlier iterations of this report. Designer Tannaz Fassihi Reproduction This publication may be reproduced in whole or in part and in any form for educational or non-profit purposes without special permission from the copyright holders provided acknowledgement of the source is made. UNEP would appreciate receiving a copy of .

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