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6.5 International approaches

Table 4 provides some information about approaches used in a number of other countries.

Table 4 International Approaches
Country Method Percentage real discount rate
Australia No central recommendations. Recommendations vary widely by agency and state 
Canada SRTP and SOC

8 for SOC

3 for SRTP

Denmark SOC

4 for years 0-35

3 for years 36-70

2 for years 71+

France SRTP

4 for projects 0-30 years

2 for years 31+

Germany Unknown 3
Japan SOC 4
Netherlands SOC 5.5
Norway SOC

4 for years 0-40

3 for years 40-75

2 for years 75+

Sweden No cross-sector national guidance, but SRTP for transport sector 3.5 for transport sector
United States SRTP and SOC

7 for projects whose main effect is to displace private capital (to approximate SOC)

3 for projects whose main effect is to displace private consumption (to approximate SRTP)

Sensitivity testing at 1-3 encouraged for projects which have a significant intergenerational impact

United Kingdom SRTP

3.5 for years 0-30

3 for years 31-75

Reducing to 1 over years 75-300+

New Zealand SOC 6 default rate, plus variations for general purpose office and accommodation buildings (4), infrastructure (6) and technology (7)

Sources: Harrison (2010), Gollier and Hammitt (2014), HM Treasury (2003), Johansson and Kristrom (2007), OECD (2015), Office of Management and Budget (2003), Mouter (2015), Treasury Board of Canada (2007)

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