A If Someone Doesn't Care About Future Generations, Does This

question 27

Essay

a. If someone doesn't care about future generations, does this makes their rate of time preference (discount rate) higher or lower (circle one)?
b. If you are willing to accept no less than $1200 in one year in exchange for providing a loan of $1000 now, what is your discount rate? ________
c. For someone with a discount rate of 15%, what is the present value of saving wildlife that would be worth $500 million in 120 years? ________ Show your work

---

Definitions:

Fossil Fuels

Natural fuels such as coal, oil, and natural gas formed from the decomposed remains of ancient plants and animals, used as a primary energy source.

Tragedy of the Commons

A situation in a shared-resource system where individual users acting independently according to their own self-interest behave contrary to the common good of all users by depleting or spoiling that resource.

Public Goods Dilemma

A situation in which the consumption of a good by one individual does not reduce its availability to others, leading to potential overuse or depletion.

Fads

Interests or practices followed enthusiastically for a relatively short period of time.