Full Title: Letter Report for the Committee on Prospective Benefits of DOE's Energy Efficiency and Fossil Energy R&D Programs
Author(s): National Academy of Sciences
Publisher(s): National Academy of Sciences
Publication Date: January 1, 2005
Full Text: Download Resource
Description (excerpt):
From the time the Department of Energy was formed in 1977, successive administrations in Washington, D.C., have looked to technological innovation as a critical tool for ensuring that the nation has a reliable supply of affordable, clean energy. Recognizing the importance of technological innovation, DOE, the Office of Management and Budget (OMB), and congressional committees have given increasing attention to understanding the effectiveness of federal funding for applied energy research and development (R&D).2 Evaluating government investment in applied energy R&D programs requires assessing their costs and benefits. Doing so is not a trivial matter. First, the analysis of costs and benefits must reflect the full range of public benefits—environmental and energy security impacts as well as economic effects. Second, the analysis must consider how likely the research is to succeed and how valuable the research will be if it is successful. Finally, the analysis must consider what might happen if the government did not support the project: Would some private entity undertake it or an equivalent activity that would produce some or all of the benefits of government involvement?