question archive Assume that you are convinced that if something isn't done now, global warming is going to create extensive problems and damage by the end of this century
Assume that you are convinced that if something isn't done now, global warming is going to create extensive problems and damage by the end of this century
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Assume that you are convinced that if something isn't done now, global warming is going to create extensive problems and damage by the end of this century.
a. If you were preparing a cost-benefit analysis of the impacts and had a 100 year horizon for your projections, would you use a 3% or an 8% discount rate? Why would you use a lower or higher present value? Explain this in terms of getting any environmental protections projects done now or later justified by their present value given a lower or higher discount rate.
b. explain the intergenerational question. Furthermore, explain how the discount rate you chose will positively or negatively affect those yet to be born.
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