The discounting rate in terms of evaluating investments in rangelands

This paper aims at analyzing and evaluating investments in Rangeland Management through the tool of discount rate. The most important parameter which is considered when estimating the discount rate is the lifetime of the investment, which varies depending on the kind of the intervention. An undeniable characteristic of rangelands is their rich biodiversity. However the fact that there has not been recorded all the flora and fauna yet, suggests the need for using the lowest possible discount rate (but not zero), giving thus a high value on the benefits that will arise for future generations always in the light of sustainable development. At the same time, there has to be conducted a sensitivity analysis in order to determine the upper and lower limit of return on investment so that the in charge decision maker can be more flexible as far as his related to the investment proposal is concerned.