Discount rate. Clearly the choice of discount rate has a very large effect on
any values, because most impacts of climate change occur in the future
Higher discount rates lead to lower values. As an illustration, in FUND, as an example of importance of the effect, a discount rate of 1% pure rate of time preference (PRTP) of 0% (whist a 3% PRTP can lead to net benefit). the green book declining discount rate scheme produced estimates between 0 and 1% PRTP (see Figure 3 for an examples from a
central FUND run