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Question: suppose environmental economists estimate that 100 years from now climate...

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Suppose environmental economists estimate that 100 years from now climate change will imp one-time cost on society of five trillion dollars. Congress proposes spending one trillion dollars today on actions which it is known with certainty will completely eliminate the five trillion dollar cost. a. Suppose the relevant discount rate is 3%. Should Congress authorize spending the one trillion 3. dollars? Justify your answer Suppose that instead of a one-time cost of five trillion dollars, the cost will be five trillion dollars a year, starting in year 100 and then continuing at that level forever. Now, should Congress authorize the one trillion dollar expenditure? (The relevant discount rate remains at 3%) Again, justify your answer. b.
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