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Energy Research and Development
Pages 215-246

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From page 215...
... For a given proj ect, ache funds required as ache proj ect mores from concept to 2 commercial plant increase by a factor of about ten at each stage. Economic analysis is .~s~cifled increasingly as a pro gram progresses through the spectrum of research, development, demonstration, and commercialization, although often ~ ~ is not applied.
From page 216...
... appear p Fanciful ~ at least for the near aced. In the United S tates, the nuclear industry is staggering or dying, the Synthetic Fuels Corporation is being closed down by Congress, and many ir~i~ciatives for encouraging small generators of electricity have beer cut back.
From page 217...
... . A review of the past ten years shows such proj ects as the Clinch River Breeder Reactor (CRBR)
From page 218...
... However, the author of this paper knows of no studies protruding similar analytic support for federal funding of basic research, although Harvey Brooks has provided many examples of valuable science performed with federal s~ppor~c, science that can be collected, at least plausibly, to important commercial applications. Basic research usually has been supported across ~ spectrum of political philosophies: — ~ 1 - —
From page 219...
... Fun~eental.ly, support for basic research is sub; ective, based on ache conclusion echoic basic research leads to important public benefits. - in ideas generated, people trained, and intellectually stimulating environments provided.
From page 220...
... Tilton24 is an economist; the Research and Development Act is a political creation; Deutch is a former director of energy research and undersecretary of DOE, and a chemist; the members of the Energy Research Advisory Board2 are technologist, primarily, but writing within political constraints; and Brooks is a technologist writing on public policy. Four of the five sources agree that one appropriate role for government funding of R&D is where there is no pri~ra~ce developer (or — 7 i6 —
From page 221...
... l - ~ ~ At so z ¢ ~ z 4~ ~ ~ z - to - ~ Lo JO ~ ~ c)
From page 222...
... (also cited by Mowery jO These examples are at ache research end of the research, developmen~c, demonstration, and commercialization continuum. Such proj ects tend to cake a long time to fruition, but also are not particularly expensive (although construction of some of NASA's wind tunnels was)
From page 223...
... "3 An earlier report by the Energy Research Advisory Board concluded that federal research support is required "where there is reasonable certainty that timely and adequate3~esponse by industry and commerce is an unrealistic assumption." These conclusions are not restricted to the United S rates . A recent report from the Intel ~~a~cional Energy Agency noted that market forces may be inadequate to develop appropriate solutions in a timely manner when national interests - - such as energy and economic security, health and safety research and regulation, environmental concerns, development of technology infrastructure for future industry, employment, industrial and regional development, and defense- - are concerned.
From page 224...
... electrical power network, ache government has funded a superconducting cable pro: ect at the Broo~aven National I^boratory, research at the Los Alamos National Laboratory on superconducting magnetic techniques ~co imp rode transmission efficiency, and test programs to evaluate the effects -on animals of the high-voltage electrical fields around transmission lines . In the L970's, as use of solar energy became a national goal, DOE developed programs on photovoltaic properties of thin films, concentrators, and advanced materials.
From page 225...
... R&D Funding Area Department Electric Power Gas Research of Energy Research Institute Institute Elec~cr~c-related 2, 189 supp ly 141 Liquid- and gas-rel ated 447 39 36 SUMP tY Conservation and 392 64 38 improved end use utilization . Source: The Federal Role in Research and DeveJopmenc, A Report of - the Energy Research Advisory Board co the United Stares Department of Energy.
From page 226...
... Much applied research consists of small, unglamorous proj ects, which may, however, have a significant effect on the national economy or qua City of life. A good area to study is conserva~cion, in which DOE has funded many proj ects, including the following: a method for trapping and then burning paint solvent fees in metal coating processes; a method for using foam rather than water in textile finishing; a study of heat transfer between buildings and the ground; studies of insulating materials; development of ceramic materials for use in combustion en,g~nes; and development of electric storage batteries .
From page 227...
... As federal proj ects get large, political pressures increase, 48 particularly pressures by those who do not understand the technology i;~red. Susceptibility deco such pressures is increased by the relatively small size of the proj ects in relation to the total federal budget.
From page 228...
... n There also is growing criticism from supporters of solar energy -- both political and technical -- who argue that the government has subsidized nuclear energy unfairly. Although nuclear support has been productive, the large dollar amounts spent on such projects as the Clinch River Breeder Reactor could have been spent much better elsewhere.
From page 229...
... It was this approach -- that industry was heavily involved -- that the government used for many years to justify continuing the Clinch River Breeder Reactor. However, of the $258 million pledged, 24 utility companies accounted for 53 percent of the funds by pledging - 225
From page 230...
... Me failures, however, do not deny ache validity of a need for nationally funded R&D proj ects . In general, the time horizon for private industry in~restmen~c is too short to support ache high-cost R&D needed deco develop maj or new energy technologies for the late 1990' s or early 2000' s .
From page 231...
... He notes that the conventional government practice is direct federal R&I) contract support, which "always requires a good deal of governmental involvement in proj egg management which at best obscures and sometimes ruins performance." The proj ects listed previously as failures suffered from several o f these faults .
From page 232...
... , which was a combination demonstration project and government commercial venture, and also funded three advanced isotope separation proj ects at about $50 million per year. None of the programs was subj ect to an economic analysis to determine what would be the rest market f or uranium enrichment services .
From page 233...
... Although often thought of as an overwhelming force, the federal government s more like ~ large collection of single-ceiled creatures - - it moves almost blindly, in slow, disorganized motion. The government succeeds in small proj ects - -but so does priorate industry.
From page 235...
... (If government is the final user, as it is of military products, then a different set of national goods is involved, with different, or an least additional, criteria. ~ In the three suitable stages, government funding can range from little to all, and federal involvemen~c can vary from hands-off to direct proj ect management.
From page 236...
... ~ Currently., federal energy research and deve topment is funded almost ent' rely by the Department of Energy. Al~cernatives have been suggested, including the following: ~ ~ ~ ~ elimination of most, if not all, federal R&D funding for large proj ects .
From page 237...
... .14 However , examination of the Synthetic Fuels Corporation ~ SFC) experience should provide insight into the pitfalls of such a board.
From page 238...
... ~ 6 ~ The largest dollar amounts per program go to engineering development proj ects, which also may be called demons~cration projects. These have the highest public visibili~cy and hay-e been studied more than any other energy R&O category.
From page 239...
... For example, if ache government plans a several billion dollar project, then go~rerr~ment should be willing to pay the manager $SOO, 000 a year, five second-le~rei managers $3SO, 000 a year, and 20 third- Petrel managers $200, 000 a year. In constant dollars, given a ten-year proj ect life for a successful large those salaries will cost S62.
From page 240...
... 2. Using slightly different terminology for the stages°-scient~fic feasibility, engineering development, engineering demonstration, and commercial plant- - the costs have been estimated Deco be about $i million, $10 million, $~10 mill ion, arid $i bill ion for a new process.
From page 241...
... Prospects for Synthetic Fuels in eke United States. Boulder, CO: Colorado Associated University Press, 1982.
From page 242...
... S antitrust laws often have been described as prohibiting collections of companies from j oining together to fund research proj ects .
From page 243...
... "On the His tow of the Evolution of Light Water Reactor Safety in the United States .
From page 244...
... Energy Research snd Development, A Report to ache Energy Research Advisory Board.
From page 245...
... i3 -IS . See also Fed eral Financial Support for If gh-Tecnnology Industries." Washington, OC: Congressional Budget Office, June 1985, pp .


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