Discounting the Benefits of Climate Change Policies Using Uncertain Rates

Journal Article (Academic Article)

Evaluating environmental policies, such as the mitigation of greenhouse gases, frequently requires balancing near-term mitigation costs against long-term environmental benefits. Conventional approaches to valuing such investments hold interest rates constant, but the authors contend that there is a real degree of uncertainty in future interest rates. This leads to a higher valuation of future benefits relative to conventional methods that ignore interest rate uncertainty.

Full Text

Duke Authors

Cited Authors

  • Newell, R; Pizer, W,

Published Date

  • January 1, 2002

Published In

Start / End Page

  • 15 - 20

Published By

International Standard Serial Number (ISSN)

  • 0048-7376