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4min chapter
Josh Younger on the Soaring Cost of Climate Change and Understanding the SLR
Odd Lots
Is the Discount Factor an Important Input Into Climate Change Models?
Is the discount factor perhaps an under-appreciated input into our models of climate change and cost benefit analysis? Yeah, it's massively important because of the long timeframes involved. So if you have a 1% annualized discount factor and you compound that over 100 years, you're talking about a very large effect. And so when we look at 100 years that $100 of nominal damage is worth $300, $400.
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