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Václav & Me | 55 comments (55 topical, editorial, 0 hidden)
Re: Here is his response to mine... (4.00 / 7)
Connect the "discount rate" to the discussion we had the other day about bond yields, and "required return".

I think what Klaus is saying is that the money you'd spend on mitigation today can be best invested to obtain high [higher than Stern's assumed discount rate] long-term returns and the proceeds used to pay for reparation of any damage, at a profit [the profit coming from the difference between the yield of your investment and Stern's discount rate].

What is Stern's discount rate, and how does that compare to projections of real GDP growth?

Can the last politician to go out the revolving door please turn the lights off?

by Carrie (migeru at eurotrib dot com) on Fri Jun 22nd, 2007 at 05:07:51 AM EST
[ Parent ]
Re: Here is his response to mine... (none / 1)
aren't we back to the back alley where I steal your watch and wallet, then invest the proceeds with a vague promise that if I make enough profit I'll pay you back later?

I'll give you two hamburgers tomorrow for one hamburger today...

The difference between theory and practise in practise ...

by DeAnander (de_at_daclarke_dot_org) on Sat Jun 23rd, 2007 at 12:18:29 AM EST
[ Parent ]
Re: Here is his response to mine... (none / 1)
except that I read last week that 13 million people died in 06 from "environmental causes" (which is kind of vague, but I think the report meant "from pollution and climate-related hardships, hunger from desertification, disease and thirst from aridity and falling river levels").

how do we pay them back?

The difference between theory and practise in practise ...

by DeAnander (de_at_daclarke_dot_org) on Sat Jun 23rd, 2007 at 12:20:02 AM EST
[ Parent ]

Václav & Me | 55 comments (55 topical, 0 editorial, 0 hidden)
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