Thursday, July 30, 2009

How to discount time for climate change policies

If you ever tried to argue with a biologist about the pros and cons of conservation, of climate change or habitat encroachment, for example, the debate will pretty fast narrow down to whether the future should be discounted or not. For an economist, this is a nonsensical debate, as the present value of anything is infinity if there is no discount rate and a possibly infinite lifetime. But among

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