The choice of the discount rate used in benefitcost analyses of a climate policy can have a large

influence on the conclusion drawn from it. Using discount rates of 1% and 5% calculate the net present value of spending $1 billion today to get $100 billion in benefits that would occur 100 years from now . Name an interest group likely to favor a discount rate of 1% (or lower) and an interest group likely to favor a discount rate of 5% (or higher) and why. What source of power generation looks relatively more attractive to coalfired power with a low discount rate and what source of power eneration looks more attractive relative to coalfired power with a high discount rate and why?