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Disagreement And Design: Searching For Consensus In The Climate Policy And Intergenerational Discounting Debate, Michael A. Kane

William & Mary Environmental Law and Policy Review

Current approaches to discounting in climate policy present a seemingly intractable problem. While it is widely recognized that choice of discount rate in climate models can easily dwarf the effect of other parameter inputs, there is at present a very wide disagreement, both in law and in economics, about the appropriate discount rate to use. This Paper provides a framework for achieving a workable consensus range for acceptable discount rates in climate models. It does so by emphasizing three factors previously ignored in the literature. First, it demonstrates that the choice of discount rate should be tailored to the type …