ABSTRACT
The chapter explains what a discount rate is and the purpose of applying it in appraising projects and in preparing asset accounts, particularly in valuing natural capital. It discusses what numerical value the discount rate should take, the impact of uncertainty on that value and the difference between private and social rates of discount. The present practice of discount in the SEEA guidelines and other accounting platforms is described and discussed. Applications to the valuation of different forms of natural capital are presented.
