Equity & The Discount Rate in Climate Change Economics

Abstract

The focus of this research seeks to determine the best practices in determining climate change mitigation policies, and will focus on the role of the discount rate. A robust debate surrounding the practice of discounting exists. The complex, global problems surrounding climate change require creative and innovative solutions beyond the standard discounting techniques. The review also reveals the normative choices that are taking place within the economic analyses being done with regard to the discount rate. Through my analysis I will examine the prevalence of such normative choice and determine the best practices when determining the discount rate, and explore ethical considerations that have entered the economic research. [From Introduction]