Investment Decisions and Environmental Policy

9319808品迪克这个项目由两部分组成。第一个目的是扩展研究人员最近在不确定情况下不可逆投资决策方面的工作。第二部分涉及将第一部分中发展的思想和方法应用于存在不可逆性的环境政策的分析和设计。将开发出将经济不确定性和生态不确定性与两种不可逆性相结合的模型，这两种不可逆性往往是环境政策通过时所固有的。第一种不可逆性是环境法规本身给社会带来的沉没成本。第二是以避免环境退化的形式产生的沉没利益，这也是这些规定的结果。这项活动的目标是将这些模型应用于分析针对全球变暖问题的政策。***

9319808 Pindyck This project consists of two parts. The purpose of the first is to extend the investigator's recent work on irreversible investment decisions under uncertainty. The second part involves applying the ideas and methods developed in the first part to the analysis and design of environmental policy in the presence of irreversibilities. Models will be developed that combine both economic uncertainty and ecological uncertainty with two kinds of irreversibilities that are often inherent in the adoption of an environmental policy. The first kind of irreversibility is the sunk cost to society resulting from the environmental regulations themselves. The second is the sunk benefit in the form of avoided environmental degradation that also results from the regulations. The goal of this activity is to apply the models to the analysis of policies directed at the problem of global warming. ***