Question

The main problem with the benefit-cost analysis is to determine which interest rate we need to choose in order to take a fair decision related with an environmental issue. What do you think?. What interest rate from the market would be the most appropriate?

Answer 1

Cost benefit analysis, also known as benefit cost analysis refers to the study which gives out best outcomes from the chosen alternative for any present thing or a method  

Studying this principle in context with the environment and chosing an alternative to apply the best possible interest rate for efficient cost benefit can be seen as:

For example: installing Solar panels at the organisation's building or at the manufacturing unit. This step would cause a heavy installation cost at the initial but once installed would surely provide cost efficient returns. The interest rates would be appropriate as the electricity generation after installation would would be minimal and hence the benefits woud prove to be higher than the cost.