In this paper, the authors provide a theoretical review of option value and its relationship to a more familiar concept in decision analysis, the value of information. They further show how option value might be measured with the aid of a partly realistic and partly hypothetical example. The...

Earlier work on environmental decisions under uncertainty is extended from two periods to many, permitting treatment of a richer variety of problems. Implications for pollution control policy of several different kinds of ecosystem recovery dynamics are considered in the context of improving...

This paper evaluates the accuracy of two methods to forecast natural gas prices: using the Energy Information Administration's ''Annual Energy Outlook'' forecasted price (AEO) and the ''Henry Hub'' compared to U.S. Wellhead futures price. A statistical analysis is performed to determine the...

The purpose of this article is to compare the accuracy of forecasts for natural gas prices as reported by the Energy Information Administration's Short-Term Energy Outlook (STEO) and the futures market for the period from 1998 to 2003. The analysis tabulates the existing data and develops a...

This report summarizes our study of the price elasticity of demand for home appliances, including refrigerators, clothes washers, and dishwashers. In the context of increasingly stringent appliance standards, we are interested in what kind of impact the increased manufacturing costs caused by...

In this report we calculate the change in final consumer prices due to minimum efficiency standards, focusing on a standard economic model of the air-conditioning and heating equipment (ACHE) wholesale industry. The model examines the relationship between the marginal cost to distribute and sell...