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This Concept Map, created with IHMC CmapTools, has information related to: overall-discount-rate, "No sensible policymaker would base the globe’s future on a single model, a single set of computer runs, or a single national or ethical perspective. Sensible decision making requires a robust set of alternative scenarios and sensitivity analyses to determine whether some rabbit has in the dead of night jumped into the hat and is responsible for unusual results. One of the major flaws in the Review is the absence of just these robustness analyses." (701) objects (Nordhaus 2007) if we use a standard formula that calculates the discount rate as the sum of the rate of pure time preference and the growth rate of per capita consumption, the latter multiplied with an elasticity parameter, and if we should apply a low discount rate of pure time preference of 0.1%, and if we should apply a growth rate of 1.3% per capita consumption, and if we should use an elasticity parameter of 1, then we should apply a discount rate of 1.4%, "Even using this relatively low rate, impacts which occur 200 years in the future have just 6 per cent of their value compared to their occuring today" (174) objects (Baer/ Spash if we use a standard formula that calculates the discount rate as the sum of the rate of pure time preference and the growth rate of per capita consumption, the latter multiplied with an elasticity parameter, and if we should apply a low discount rate of pure time preference of 0.1%, and if we should apply a growth rate of 1.3% per capita consumption, and if we should use an elasticity parameter of 1, then we should apply a discount rate of 1.4%, in the optimal growth framework that is used here, the parameters (2), (3), and (4) "cannot be chosen inde- pendently if the model is designed to match observable real interest rates and savings rates." (694). Stern, however, determines these parameters independently. "If the model is designed to fit current market data, then the modeler has one but not two degrees of freedom in choosing the time discount rate and the consumption elasticity. (700) e.g. "In the baseline empirical model [which is defined as pathway "in which there are essentially no policies to reduce greenhouse gas emissions"], I adopt a time discount rate of 1.5 percent per year with a consumption elasticity of 2. These yield an equilibrium real interest rate of 5.5 percent per year with the consumption growth that is projected over the next century by the DICE-2007 model. It turns out that the calibration of the utility function makes an enormous difference to the results in global-warming models" (694), click on the small, bent arrow at the bottom right of this text box to get back to the Stern Review's main argumentation start here if we use a standard formula that calculates the discount rate as the sum of the rate of pure time preference and the growth rate of per capita consumption, the latter multiplied with an elasticity parameter, and if we should apply a low discount rate of pure time preference of 0.1%, and if we should apply a growth rate of 1.3% per capita consumption, and if we should use an elasticity parameter of 1, then we should apply a discount rate of 1.4%, in the optimal growth framework that is used here, the parameters (2), (3), and (4) "cannot be chosen inde- pendently if the model is designed to match observable real interest rates and savings rates." (694). Stern, however, determines these parameters independently. "If the model is designed to fit current market data, then the modeler has one but not two degrees of freedom in choosing the time discount rate and the consumption elasticity. (700) defeats (Nordhaus 2007) if we use a standard formula that calculates the discount rate as the sum of the rate of pure time preference and the growth rate of per capita consumption, the latter multiplied with an elasticity parameter, and if we should apply a low discount rate of pure time preference of 0.1%, and if we should apply a growth rate of 1.3% per capita consumption, and if we should use an elasticity parameter of 1, then we should apply a discount rate of 1.4%, The Debate about the Stern-Review and the Economics of Climate Change visualized according to the rules and conventions of Logical Argument Mapping (LAM)