Financing US energy development: an economist's perspective
The economic arguments for the three financing options (private sector, government, and consumer) address the central issue of who should bear the risks and financial burden of future US energy development. The author then examines the major legal arguments of the various proponents and opponents of energy projects, examines their relationship to the economic arguments, and explores the question of the proper role of regulation as a risk-spreading device. Using the Great Plains Coal Gasification Project for illustration, the author shows that while government financing was the most equitable and the most efficient solution, it ran afoul of pragmatic corporate efforts to facilitate project financing, Congressional politics, and bureaucratic maneuvering. He concludes that, in the absence of market failures, the choice between private and consumer financing rests on whether risks will significantly raise costs and whether it is more fair for builders or consumers to bear risks and financial burdens. 130 references.
- Research Organization:
- Harvard Univ., Cambridge, MA
- OSTI ID:
- 6786150
- Journal Information:
- Energy Law J.; (United States), Journal Name: Energy Law J.; (United States) Vol. 2:1; ISSN ELJOE
- Country of Publication:
- United States
- Language:
- English
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