Krautkraemer (1988) argued that lowering discountrates can in fact worsenenvironmental degradation-by reducingthe cost of capital andthereby lowering the cost of production such that more is consumedin the near term relative to the case where discount rates were higher (for a more recent exposition c2fthis point see Norgaard 1991).employinga zero discountrate is inequitable. then CIP could be quite large too.whichruns counterto the proposed aim of eliminatingdiscrinination between time periods-especially when the presentcontainedwidespread poverty (Pearce 1991). since we are likely to be richer in the future. a represents the preference of an individual for comsumptiontoday rather than in the future-it may be based on the myopic notion of "pure" preference.

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