1.2. Discounting carbon
Most analyses of carbon benefits of response
options do not discount carbon (i.e. they adopt
a discount rate of zero). This is currently the
practice of the Global Environment Facility
(GEF) in comparing options for financing with
the funds this agency distributes under Agenda
21. However, a zero discount rate introduces
distortions in the relative merit of different
options. Giving some additional weight to the
short-term, as opposed to the long-term, is
warranted. Selfish or not, most people are more
concerned with what will occur over the
remainder of their own lives than they are with
what will occur a century in the future. It is also