Government's role in financing energy investment

Journal Article · Mon Dec 06 04:00:00 EST 1976 · Commer. Am.; (United States)

OSTI ID:7237567

Niehuss, J M

Mr. Niehuss suggests that energy investment should be kept in the private sector. In addition to the private market's capacity for efficient capital allocation, the inequities of taxpayers carrying the burden of risks, and the general impact on the economy of Federal financial assistance programs, he cites the current level of government regulation as a constraint against private investment and the goal of energy independence as a national need to urge a reduced government role. Projected energy investment figures of $580 billion during the 1975--1985 period are in line with the historical proportion (about 30%) of estimated business spending for new plant and equipment. Recent trends show increased external financing, although most energy projects could compete for private capital. This is a result of non-economic energy programs based on unconventional energy sources, inadequate regulation (e.g., a slow response to needed utility rate increases), and some high-risk technological projects. A rapid movement toward independent state and Federal regulatory agencies will relieve much of the problem and avoid redirecting capital from other areas of the economy. (DCK)

• Research Organization: Deputy Asst. Secretary of the Treasury for Investment and Energy Policy
• OSTI ID: 7237567
• Journal Information: Commer. Am.; (United States), Journal Name: Commer. Am.; (United States) Vol. 1:25; ISSN COAMD
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
CAPITAL
ECONOMICS
ENERGY POLICY
ENERGY SOURCE DEVELOPMENT
FINANCIAL INCENTIVES
GOVERNMENT POLICIES
INVESTMENT
RECOMMENDATIONS
REGULATIONS