CENTRO EURO-MEDITERRANEO PER I CAMBIAMENTI CLIMATICI 11 Aggregating welfare through time The traditional role of time and discounting Reasons to discount Pure time preference (uncertainty) Distributional issues (equity) dr = 0 => present = future dr > 0 => present more important than future NB Time NB1 (dr1) NB2 (dr2) NB3 (dr3) dr1 < dr2 < dr3 T*T° Any choice involves a subjective or ethical judgment!
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