PP Presentation

• When we use cost/benefit analysis to evaluate projects or policies that affect future generations, we must somehow decide on how to bring the benefits and costs to these future generations into the present.

• If we apply discounting to benefit/cost analysis, are we robbing future generations to benefit the present?

• When we monetize benefits and costs without regard to who receives them, we are implicitly assuming that a dollar generates the same incremental gain in pleasure or marginal utility to all people.

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