Browsing Working Papers by Author "Jacoby, Henry D."

The Cost of Climate Policy in the United States

Morris, Jennifer F.; Jacoby, Henry D.; Reilly, John M.; Paltsev, Sergey (2009)

We consider the cost of meeting emissions reduction targets consistent with a G8 proposal of a 50 percent global reduction in emissions by 2050, and an Obama Administration proposal of an 80 percent reduction over this ...

Project evaluation : a practical asset pricing method

Jacoby, Henry D.; Laughton, David G. (MIT Center for Energy and Environmental Policy Research, 1992)

This paper presents a practical approach to project evaluation using techniques of modern financial economics, with a sample application to oil development under a complex tax system. The method overcomes shortcomings of ...

Short-term shocks, reversion, and long-term decision-making

Laughton, David G.; Jacoby, Henry D. (MIT Center for Energy and Environmental Policy Research, 1993)

Many observers claim that discounted cash-flow methods lead to a neglect of long-term and strategic decision-making. Using modern asset pricing methods, we examine one possible reason for this problem. If the cash-flows ...

A two-method solution to the investment timing option

Laughton, David G.; Jacoby, Henry D. (MIT Center for Energy and Environmental Policy Research, 1990)

Within the realm of derivative asset valuation, two types of methods are available for solving the investment timing option, each with a serious limitation for practical projects. Methods that use Monte Carlo simulation ...

Uncertainty, information and project evaluation

Jacoby, Henry D.; Laughton, David G. (MIT Center for Energy and Environmental Policy Research, 1990)

This paper presents a practical method for project evaluation using techniques of financial economics which were developed originally for valuing stock options and other financial assets. It is based on the formulation and ...