ENVR 201 Lecture Notes - Lecture 17: Ecosystem Services, Discount Window, Aggregation Problem
7 Feb 2018
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)f we are richer in the future, doesn"t mean we have bigger cars or houses, it could just mean that our productivity is higher. We might have the choice to have all these things, but we might not have them: allowing the future generation to have choices. The innate vs consumption discounting : microeconomic discounting: what is the value of future utility, copy. Value in economics is about marginal changes (cid:523)don"t memorize this(cid:524: discount factor tells us how much to discount marginal consumption in some possible future scenario. Interest rate market reflection of the private (as opposed to social) discount rate: this is the opportunity cost of risk-free capital. Discounting and conservation: blue whale populations grow at about 5% per year. As it becomes more rare it becomes more valuable to harvest: existential value as population becomes small and becomes extinct, the existence value increases.
