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When people place a high value on ensuring a cleaner environment for future generations, which statement is true?

A. The present value of future environmental benefits is lower
B. Environmental damage suffered in the future would be of less concern today
C. The future is discounted at a relatively low rate
D. The present value of future environmental benefits would equal the discount rate

User MrHill
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Final answer:

The true statement when placing a high value on a cleaner environment for future generations is that the future is discounted at a relatively low rate, which increases the present value of future environmental benefits. The correct answer is option C.

Step-by-step explanation:

When people place a high value on ensuring a cleaner environment for future generations, the statement that is true is that the future is discounted at a relatively low rate. The concept at play here is the present discounted value, an analytical tool used to compare present costs of an action with its long-term future benefits.

In the context of environmental policies, such as reducing carbon dioxide emissions to mitigate global warming, a lower discount rate implies greater importance assigned to future benefits, thereby increasing their present value.

Moreover, the benefits of a cleaner environment, such as improved public health, boosted industries like farming and tourism, increased property values, and the intrinsic value of enjoying a clean environment, all contribute to a higher present discounted value when future benefits are highly valued.

User Dirq
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