Before revision: Capital investment literature implicitly assumes that exponential growthof consumption can last indefinitely into the future. 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.
After revision: We introduce the logistic model of consumption growth, which captures a negative feedback loop preventing an unlimited growth of consumption due to finite biophysical resources of our planet. This simple dynamic model allows for derivation of the expression describing the declining long-term tail of a social discount curve. The latter plays a critical role in, e.g., climate finance with benefits on current investments deferred to centuries from now , this process is fundamentally constrained by finite biophysical resources of Earth.