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This technical report explains an analytic way to design and assess packages of financial incentives that the government can use to cost effectively promote early experience with coal-to-liquids (CTL) production of liquid fuels in the face of significant uncertainty about the future. The report applies two complementary analytic methods. The first uses observations from successful voluntary agreements in the commercial world to identify principles that the government can use to design a relationship with a private investor that is likely to ensure that early CTL production experience occurs cost effectively. Such a relationship yields investor and government behavior that, in turn, generates a set of cash flows to and from investor and government over time. The second analytic method takes these cash flows as given and assesses their effects on the investor and the government. It measures effects on an investor in terms of changes in the investor's real (adjusted for inflation) after-tax internal rate of return (IRR). It measures effects on the government in terms of changes in the real net present value (NPV) of cash flows to and from the government when assessed at the discount rate set by the Office of Management and Budget (OMB) for investments of this kind. The cash-flow analysis focuses on a hypothetical CTL combined-cycle production plant that uses a Fischer-Tropsch (FT) technology to convert coal into about 30,000 barrels per day (bpd) of diesel and naphtha; significant amounts of electricity, some of which can be sold off site; and carbon dioxide, which can be sequestered or sold for use in enhanced oil recovery (EOR) off site.
This paper discusses using an oil tax to fund U.S. transportation infrastructure. The paper discusses the pros and cons of an oil tax to take the place of the current gasoline and diesel taxes.
The word sustainability shares its root with sustenance. In the context of modern society, sustenance is inextricably linked to the use of energy. Fossil Energy provides an authoritative reference on all aspects of this key resource, which currently represents nearly 85% of global energy consumption. Gathering 16 peer-reviewed entries from the Encyclopedia of Sustainability Science and Technology, the chapters provide comprehensive, yet concise coverage of fundamentals and current areas of research. Written by recognized authorities in the field, this volume represents an essential resource for scientists and engineers working on the development of energy resources, fossil or alternative, and reflects the essential role of energy supplies in supporting a sustainable future.
Military operations in Afghanistan and Iraq consumed so much attention during his presidency that few people appreciated that George W. Bush was also an activist on the home front. Despite limited public support, and while confronting a deeply divided Congress, Bush engineered and implemented reforms of public policy on a wide range of issues: taxes, education, health care, energy, environment, and regulatory reform. In Bush on the Home Front, former Bush White House official and academic John D. Graham analyzes Bush's successes in these areas and setbacks in other areas such as Social Security and immigration reform. Graham provides valuable insights into how future presidents can shape U.S. domestic policy while facing continuing partisan polarization.
Empirical evidence of the effects of performance-based public management is scarce. This report describes a framework used to organize available empirical information on one form of performance-based management, a performance-based accountability system (PBAS). Such a system identifies individuals or organizations that must change their behavior for the performance of an activity to improve, chooses an implicit or explicit incentive structure to motivate these organizations or individuals to change, and then chooses performance measures tailored to inform the incentive structure appropriately. The study focused on systems in the child-care, education, health-care, public health emergency preparedness, and transportation sectors, mainly in the United States. Analysts could use this framework to seek empirical information in other sectors and other parts of the world. Additional empirical information could help refine existing PBASs and, more broadly, improve decisions on where to initiate new PBASs, how to implement them, and then how to design, manage, and refine them over time.
Presents a risk-management process would help senior Air Force leaders to (1) focus planning on the most salient threats, (2) gain greater clarity on the risks associated with alternative courses of action across multiple futures, (3) maintain a sense of the persistent uncertainties associated with any policy choice, and (4) effectively communicate their judgments about risk to key audiences.
Both high import payments for petroleum motor fuels and concerns regarding emissions of carbon dioxide (CO2) are motivating interest in possible fuel substitutes. Petroleum products derived from conventional crude oil constitute more than 50 percent of end-use energy deliveries in the United States and more than 95 percent of all energy used in the U.S. transportation sector. Almost 60 percent of liquid fuels are imported. Emissions from the consumption of petroleum account for 44 percent of the nation's CO2 emissions, with approximately 33 percent of national CO2 emissions resulting from transportation-fuel use. In this report, RAND researchers assess the potential future production levels, production costs, greenhouse gases, and other environmental implications of synthetic crude oil extracted from oil sands and fuels produced via coal liquefaction relative to conventional petroleum-based transportation fuels. The findings indicate the potential cost-competitiveness of these alternative fuels and the potential trade-offs that their deployment requires between economic and environmental considerations.