# Pluralistic discounting recognising different capital contributions: an example estimating the net present value of global ecosystem services

Costanza, R, Kubiszewski, I, Stoeckl, N ORCID: 0000-0001-5899-4771 and Kompas, T 2021 , 'Pluralistic discounting recognising different capital contributions: an example estimating the net present value of global ecosystem services' , Ecological Economics .

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## Abstract

Discounting the future is essential to inform long-term decisions, but the future of humanityis being put in jeopardy by using the same discount rate for all capital types. Different typesof capital assets (built, human, social, natural) have inherently different characteristics andcontribute differently to the production of all goods and services. They will behave anddepreciate differently and will thus require different discount rates and different approachesto discounting. Here, we estimate the net present value (NPV) of global ES recognizing thatecosystem services are the product of the interaction of the four different types of capital thateach have different characteristics. We combine a range of different discount rates for eachof the 4 types of capital according to their relative contributions to the production and valueof each of 17 global ecosystem services. We estimate that the NPV of global ES ranges from$5.7 to$9.1x1015 (quadrillion 2011$USD). For comparison, the NPV of global GDPestimated in the same way would be about$2.9 to \$4.8x1015. This more nuanced approach todiscounting can improve information for long-term project appraisal and decision makingand help build a more sustainable and desirable future.

Item Type: Article Costanza, R and Kubiszewski, I and Stoeckl, N and Kompas, T discounting, natural capital, social capital, ecosystem services, net present value Ecological Economics Elsevier Science Bv 0921-8009 Copyright 2021 Elsevier Ltd. Google Scholar: Stoeckl, N View statistics for this item