Space-Time Discounting in Climate Change Adaptation

Background: Space-Time Discounting Discounting is typically defined as the process of comparing the values of costs and benefits that occur at different times. This definition neglects where costs and benefits occur. For example, we might discount future costs and benefits because we care less about the welfare of people in the future, but we might also discount the welfare of people in different places. Or, we might discount future money because future people are wealthier, so a future dollar is worth less to them, but inequality in wealth exists across space as well as time. This article presents new theory on space-time discounting and uses it to analyze how humans adapt to climate change. Climate change adaptation refers to efforts to minimize damage or seize opportunity from the impacts of climate change. Three adaptation cases are considered, representing space-time discounting in project evaluation, cooperation, and conflict.