Discussion
The social discount rate is controversial chiefly because a low rate
Answer: D
Correct answer: gives more weight to benefits accruing to future generations
A low discount rate leaves distant benefits with much of their value, favouring long-lived projects such as flood defences and climate measures; a high rate discounts them almost to nothing. Since the choice therefore decides which projects can pass, it is an ethical question about intergenerational weight and not merely a technical parameter.
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