2011-02-01 09:13:06Ethical Dilemma Profoundly Sways Economics of Climate Change
John Hartz
John Hartz

"Of the many moral conundrums presented by climate change, the issue's intergenerational nature is perhaps trickiest to sort out. It boils down to this: We benefit mightily from burning cheap coal and will shoulder most of the expense associated with switching the global economy to low-carbon fuel sources. But our grandchildren and great-grandchildren will pay the price for our profligate energy ways and will reap the majority of the benefit of our shift to cleaner-burning fuels."

Source: "Ethical Dilemma Profoundly Sways Economics of Climate Change", Climate Central, Jan 27, 2011.


This article explains how and why economists use a disocunt rate to determine the cost of carbon. It also highlights the different schools of thought on what discount rate should be used.