With respect to events like global warming some economists suggest using falling discount rates because
A) exponential discounting virtually gives no weight to (large) costs incurred far into the future.
B) exponential discounting weights (large) costs incurred far into the future heavily.
C) events far in the future do not affect us.
D) we should not care about costs far in the future.

Question

Quizplus · Accepted Answer

Exponential discounting gives very low weight to costs incurred far into the future, which is not desirable in the case of events like global warming. Using falling discount rates would address this issue and give more weight to future costs.

With Respect to Events Like Global Warming Some Economists Suggest