By Jayni Foley Hein and Michael A. Livermore, founding executive director of the Institute for Policy Integrity, and an associate professor of law at the University of Virginia.Framing leasing decisions as now-or-never choices made within a single five-year period will systematically lead to inefficient overexploitation of natural resources. By taking into account the option value of delaying a decision, the government can match the oil industry’s own game and strike the proper balance between efficient levels of offshore development and environmental stewardship.
