incentive structure

Minding the Gap: Achieving Energy Success Via a Neutral Policy Platform

Review of key federal policy trends in the energy sector, identifying the unprecendented scale of interventions, and the inadequate attention being paid to incentive alignment and assessment of leverage points. 

Beginning on slide 6, the presentation provides a specific review of how the government's large scale loan guarantee programs (such as under Title XVII of the Energy Policy Act of 2005 and the proposed much larger federal "Clean Energy Deployment Administration") are not structured to achieve proper risk management or high success rates.

 

Energy Transition: Mapping an Appropriate Role for Government

Many organizations and key members of government believe that US energy markets need to embark on an accelerated transition off of oil.  Some focus on diversification away from oil imports in order to stop funding countries that don't like us much.  Others focus on climate change worries, working to transition from all fossil fuels.  Both groups push for bold, new, and often very expensive plans to alter the nation's energy path.  Usually, these plans call for large new government agencies, along with mandates, to implement the changes.