Climate Change and Future Generations

The paper argues that standard cost-benefit analysis, specifically the use of discount rates, often renders future climate benefits nearly worthless and fails as a substitute for a moral theory regarding obligations to future generations.

• The discount rate is typically the decisive factor in determining whether climate change mitigation is justified within a cost-benefit analysis, as it converts future benefits into present value.
• Standard discounting over long periods can lead to extreme valuations; for example, a 3% discount rate reduces ten million dollars five hundred years in the future to thirty-eight cents in present value.
• An evaluation of the four main justifications for intergenerational discounting reveals that none support the common practice of discounting future benefits at financial market rates of return, nor can discounting replace a moral theory of obligations to future generations.

APA

Shahabian, R. L. R. A. M. R. (2010). Climate Change and Future Generations. Institute for Policy Integrity. https://policyintegrity.org/publications/detail/climate-change-and-future-generations

Chicago

Shahabian, Richard L. Revesz and Matthew R. Climate Change and Future Generations. Institute for Policy Integrity, 2010. https://policyintegrity.org/publications/detail/climate-change-and-future-generations.

Wikipedia

{{cite report |last1=Shahabian |first1=Richard L. Revesz and Matthew R. |title=Climate Change and Future Generations |publisher=Institute for Policy Integrity |date=22 September 2010 |url=https://policyintegrity.org/publications/detail/climate-change-and-future-generations |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{shahabian2010climate, author = {Shahabian, Richard L. Revesz and Matthew R.}, title = {{Climate Change and Future Generations}}, institution = {Institute for Policy Integrity}, year = {2010}, month = sep, url = {https://policyintegrity.org/publications/detail/climate-change-and-future-generations}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }