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Schelling basically concludes that spending on climate mitigation is not very much like investing (for which normal discounting logic applies) and far more like foreign aid or leaving an inheritance (for which there is no "formula" that tells you how much to spend).pic.twitter.com/I6WvJRB7X9
We should pay fair compensation for the damage our externalities will cause. In this context, the concepts of "investment" and "income transfer or redistribution" are completely irrelevant. We should compensate future generations because it is they who will be damaged.
Yeah, I agree (and I think that is one hole of Schelling's argument - that he never brings up anything like guilt/reparations). But it, of course, doesn't change his point very much: if we are paying reparations, what is the right amount and what is the right form?
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