Under which scenarios would I need to discount benefits?

Health benefits may occur three different ways after the analysis year specified in BenMAP.

1. Certain health endpoints accrue medical expenses or lost earnings for multiple years. The

future medical expenses would need to be discounted to compare with expenses occurring in the

analysis year.

2. Pollution exposure and the resulting health effects do not occur within the same year (a.k.a. a

cession lag). The monetized benefits of future health effects would need to be discounted to

compare with the benefits of health effects that occur during the analysis year.

3. In some analyses, you may want to estimate a stream of benefits occurring over multiple

analysis years instead of just one analysis year. In this scenario, you would need to discount the

future benefits occurring in each year analyzed back to the present year in order to present the

cumulative total estimate of benefits (i.e., the net present value of a stream of benefits).

 

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