As policymakers weigh the costs and benefits of domestic and international climate policy, one thing is clear: uncertainty plays a big part in all projections regarding the long-term impacts of climate change and its costs. Agreeing upon the appropriate discount rate for climate change has led to some contentious debate.

In this RFF Weekly Policy Commentary Cameron Hepburn delves into the discussion of discounting and global warming and takes a closer look at where ethical considerations come into play. Hepburn considers controversy over rates used to as the basis for 2006’s The Economics of Climate Change: The Stern Review and offers his take whether differing calculations can be rectified to produce useful policy framework.