Discounting

Discounting

By Paul Robert Gilbert, Uneven Earth

Note from the Uneven Earth editorial team: This entry is the eighteenth to be published within Uneven Earth’s new Resources for a better future series: ​a glossary of crucial concepts in political ecology, alternative economics, and environmental justice.​ We are calling on experts and activists to help us put out easy-to-read, clear, and opinionated explainers of some of the most important issues. Anyone can write an entry, and we will help with editing to make them readable to wide audiences. The time is now to put forward concise definitions of key concepts, to explain our political position firmly and clearly. When we borrow money, interest rates determine how much we will repay, over and above the amount we originally borrowed. Or, for those of us lucky enough to have savings, interest rates determine how much we will ‘earn’ on our deposits. A discount rate performs a similar task but in reverse. Like...

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