A Logical-Perequative Methodology to Define the Social Discount Rate for the Cost-Benefit Analysis Application

The need to define effective interventions for the urban sustainable development goals is always growing and recognized by the central governments. In the current economic situation, the adequate use of EU-funds for the investments to be carried out on the territory requires a targeted and valid implementation of the economic evaluations of the projects. In this framework, in the Cost- Benefit Analysis the Social Discount Rate (SDR) is ordinarily assessed by empirical approaches that neglect the main environmental, social and economic aspects of the nation in which the intervention will be realized. In this sense, in the present research an innovative logical-perequative methodology is proposed, able to take into account the specificities of the country through the detection of the main indicators related to the environmental, social and economic sustainability issues. The main advantage of the proposed methodology is the ability to determine the adequate corrective coefficient able to adjust the official SDR values, according to the real current sustainability levels of each country.