Before revision:  However, in the context of climate finance with benefits on current investments deferred to centuries from now , this process is fundamentally constrained by finite biophysical resources of Earth. Similarly to a population dynamics, a negative feedback mechanism will eventually prevent unlimited growth of consumption and reduce its rate. We apply this basic insight to valuation of long-term social discount rates . Combining the Ramsey optimal growth framework with the marginal-utility approach and the Verhulst logistic model, we demonstrate that inevitable slowing down of consumption growth leads to a declining long-term tail of the discount curve.
After revision:  However, in the context of climate finance with benefits on current investments deferred to centuries from now . The growth rate of consumption is irregularly evolving in time, which makes estimation of an expected term-structure of consumption growth and associated social discount rates . Combining the Ramsey optimal growth framework with the marginal-utility approach and the Verhulst logistic model, we demonstrate that inevitable slowing down of consumption growth leads to a declining long-term tail of the discount curve.