However, if there are limits to technology, then this discount rate asymptotes to zero. The Chichilniski criterion of intergenerational justice also requires the social discount rate to asymptote to zero. Consequently, projects with all gains and losses occuring in the short run probably are O.K. to evaluate using a conventional analysis and financial calculation. However, the longer the run of the project, the less the discounting, period to period, of the costs and benefits occuring. I don't think that the approach of neo-classical economics has driven the problems we see.
Neoclassical analysis is popular because it is consistent with the way people are behaving.
The problems with the conculsions and policy advice lie with the assumptions that underly the analysis - ranging from the homogeneity of agents to the infinite possibilities of technology and of the human mind. Even if you keep the homogenious agent assumptions for convenience, if you get rid of the assumption of infinite technological possibilities, the conclusions of the analysis come much more in line with what those of us concerned about the environment want.