VIII. Suppose that a non-degradable pollutant is causing one billion dollars of damage every year. Although the damage will go on forever, an analysis has been prepared that considers only the next 100 years. Using a discount rate of 4.5%, the present value of the damages is $21.956 billion. How much difference would it make if all future damages were considered?

VIII. Suppose that a non-degradable pollutant is causing one billion dollars of damage every year. Although the damage will go on forever, an analysis has been prepared that considers only the next 100 years. Using a discount rate of 4.5%, the present value of the damages is $21.956 billion. How much difference would it make if all future damages were considered?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 18CTQ: Is it inevitable that government must become involved in supporting investments in new technology?

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Is it inevitable that government must become involved in supporting investments in new technology?
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