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Discounting the Benefits of Climate Change Policies Using Uncertain Rates

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Date
2002-01-01
Authors
Newell, R
Pizer, W
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Abstract
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.
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Journal article
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https://hdl.handle.net/10161/7075
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Scholars@Duke

Newell

Richard G. Newell

Adjunct Professor
Dr. Richard G. Newell is the President and CEO of Resources for the Future (RFF), an independent, nonprofit research institution that improves environmental, energy, and natural resource decisions through impartial economic research and policy engagement. From 2009 to 2011, he served as the administrator of the US Energy Information Administration, the agency responsible for official US government energy statistics and analysis. Dr. Newell is an adjunct professor at Duke University, where he
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