Federal financial incentives to induce early experience producing unconventional liquid fuels / Frank Camm, James T. Bartis, Charles J. Bushman.

Format:

Book

Author/Creator:

Camm, Frank A., 1949-

Contributor:

Bartis, James T., 1945-

Bushman, Claudia L.

Series:

Technical report (Rand Corporation) ; TR-586-AF/NETL.

Technical report ; TR-586-AF/NETL

Language:

English

Subjects (All):

Coal liquefaction--United States.

Coal liquefaction.

Federal aid to energy development--United States.

Federal aid to energy development.

Energy development--United States.

Energy development.

Physical Description:

1 online resource (97 p.)

Place of Publication:

Santa Monica, CA : RAND Corp., 2008.

Language Note:

English

Summary:

The government, as a principal, may seek to induce a private investor, as an agent, to build and operate an unconventional-oil production plant to promote early production experience with such plants. Given this goal,facing significant uncertainty about the future, the government wants to limit the cost to the public treasury of doing this. This report offers an analytic way to design and assess packages of policy instruments that the government can use to achieve its goal. It starts with general principles of the economic theories of contracting and agency. Looking across many alternative futures he

Contents:

Introduction

Designing an effective long-term public-private relationship

Assessing financial effects under uncertainty

Policy effects with 100-percent equity financing

Policy effects with debt financing

Implications for robust financial-incentive packages

Can formal source selection help the government create an integrated policy?

Conclusions

Appendixes: A. Structure of the spreadsheet analysis that implements the cash-flow model

B. How debt and loan guarantees affect investors and the government.

Notes:

Description based upon print version of record.

Includes bibliographical references (p. 75-77).

ISBN:

1-282-45121-9

9786612451218

0-8330-4865-1

OCLC:

313431788