quote · Legacy record
Suppose that we believe that in 200 years, people would be prepared to pay a million dollars (that's in today's dollars, not inflated ones) to be able to have an unspoilt valley. Now imagine that today we can profit by cutting down the forest in the valley, which will never regrow. If we apply an annual discount rate of 5 percent, compounded exponentially, how big would that profit have to be to justify the loss of a million dollars in 2210? The answer, surprisingly, is just sixty dollars! That's all that a million dollars in 200 years is worth, at that rate of discount. Obviously, then, if we use a 5 percent discount rate, values gained one thousand years in the future scarcely count at all. This is not because of any uncertainty about whether there will be human beings or other sentient creatures inhabiting this planet at that time, but merely because of the compounding effect of the rate of return on money invested now.
Suppose that we believe that in 200 years, people would be prepared to pay a million dollars (that's in today's dollars, not inflated ones) to be able to have an unspoilt valley. Now imagine that today we can profit by cutting down the forest in the valley, which will never regrow. If we apply an annual discount rate of 5 percent, compounded exponentially, how big would that profit have to be to justify the loss of a million dollars in 2210? The answer, surprisingly, is just sixty dollars! That's all that a million dollars in 200 years is worth, at that rate of discount. Obviously, then, if we use a 5 percent discount rate, values gained one thousand years in the future scarcely count at all. This is not because of any uncertainty about whether there will be human beings or other sentient creatures inhabiting this planet at that time, but merely because of the compounding effect of the rate of return on money invested now.
Approximate author period: c. 1946 AD · modern
Meaning not yet available
An individual explanation has not yet been added. We do not substitute a generic description for an interpretation of these particular words.
Begin with source-checked readings and explanations ↗Attribution & collection notes
- Author or tradition
- Peter Singer
Attribution: attributed - Country attributed
- Not established
A country attribution does not establish the earliest origin. - Historical period
- Approximate author period: c. 1946 AD · modern
Approximate author-period anchor from documented birth year 1946; activity date not established; Wikidata Q211539, https://www.wikidata.org/wiki/Q211539 (accessed 2026-10-08). Not a quotation composition date.
An author lifetime, approximate period or collection date is not necessarily the date when these words were first written or spoken. - Recorded source
- Contributor-provided quotation collection
Supplied reference C; CSV row 311345; supplied attribution, independently unverified
A collection's publication date can be later than the words it records.