ABSTRACT
Long-term discounting is a contentious issue in cost-benefit analysis. For many projects-particularly in the areas of energy, health, safety, and the environment — effects are often felt far into the future, sometimes across several generations. Global warming issues might be a prime example. At almost any reasonable discount rate, distant future effects do not very much influence the present discounted value of a project because they are drowned out by the force of compound interest, a result that many find disturbing.
