The point of this short paper is to argue that any discussion of energy and climate policy should begin with a clear presentation of the basic arithmetic of energy transition. The basic arithmetic highlights the fact that the numbers must add up – projected energy consumption must equal future...

A widely replicated result, using U.S. data, is that dividend-price ratios predict future returns, not future dividend growth. As noted by Cochrane (2011) in his Presidential Address to the American Finance Association, this is evidence of stock return predictability contrary to the original...

Many university endowments and other public funds are considering divesting all companies in business “related to fossil fuels.” In this paper, I estimate the specific costs of doing so for five university endowments: Harvard, Yale, MIT, Columbia and NYU. Because none of the universities...

We begin by identifying the four major obstacles for financing the transition to a sustainable energy world: the immense size of the required financing, the need to coordinate investments in dozens of interrelated projects required for an orderly transition, the need to get the investment...

A private right of action is not expressly mentioned in either §10(b) or Rule 10b-5 of the Securities Exchange Act of 1934, and hence such a right must be implied. To justify a reasonable cause of action, the plaintiff must prove: (1) a material omission or misstatement; (2) made by the...