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<br />OOJ33~ <br /> <br />22 <br /> <br />"Now just to give you an example, and I mean this only as <br />an example and I would like to emphasize that so I am not at any <br />point quoted out of context as recommending a particular number <br />to you for the discount rate, but as an example I would have, let <br />us say, three discount rates: low, medium and high, which would <br />not be common to all objectives because what is a low rate with <br />respect to one objective may not be a low rate with respect to <br />another objective. <br /> <br />"For example, a low rate for a national economic develop- <br />ment might be two and a half percent but for environmental quality <br />zero, which would indicate that the relative emphasis on future <br />environmental quality should be higher relative to the present than <br />it is with respect to national economic development because of the <br />expectation that the problems of the environment are going to get <br />more serious as time goes by and not less. <br /> <br />"Similarly, with respect to regional development and well- <br />being, a low rate might be five percent rather than two and a half, <br />an expectation being that other programs are going further, which <br />at some reasonable date in the future are going to make these <br />problems less pressing for water resources design because the <br />regional and class disparities of income will have been <br />ameliorated. " <br /> <br />*~~~~** <br /> <br />"A set of medium rates for these objectives might be, again, <br />for eXan1ple, five percent for national economic development, two <br />and a half percent for environmental quality, seven and a half for <br />regional and social well-being objectives, and a high set of rate's <br />might be seven and a half percent for national economic develop- <br />ment, five for environmental quality, and ten percent for regional <br />development and social well- !).eing. " <br /> <br />.....1......... .... <br />'(" or.,. ..,- <br /> <br />"The discount rate issue is viewed by most people solely in <br />terms of more or fewer projects, and they couldn't care less <br />about what the right way of discounting is. I think that, as I say, <br />is an error. I think it is not as much more or fewer projects that <br />is at is sue as the nature and kind of projects that we will have. " <br />