Much of the dispute among economists over whether moderate or aggressive action to reduce greenhouse gases is warranted depends on different views about how we should discount the global warming damages to future generations from current emissions.

However, as discussed in this Weekly Policy Commentary by Dallas Burtraw and Thomas Sterner, if the value of environmental resources potentially at risk from climate change is rising over time relative to the value of ordinary market consumption, this effectively means that the future, nonmarket impacts of climate change should be discounted at a lower rate. Accounting for this possibility increases the likelihood that more aggressive near-term actions to cut emissions are justifiable on economic grounds.