Environment and Natural Resources

Characterizing the future performance of energy technologies can improve the development of energy policies that have net benefits under a broad set of future conditions. In particular, decisions about public investments in research, development, and demonstration (RD&D) that promote technological change can benefit from (1) an explicit consideration of the uncertainty inherent in the innovation process and (2) a systematic evaluation of the tradeoffs in investment allocations across different technologies. To shed light on these questions, over the past five years several groups in the United States and Europe have conducted expert elicitations and modeled the resulting societal benefits. In this paper, the authors discuss the lessons learned from the design and implementation of these initiatives.

Probabilistic estimates of the cost and performance of future nuclear energy systems under different scenarios of government research, development, and demonstration (RD&D) spending were obtained from 30 U.S. and 30 European nuclear technology experts. The majority expected that such RD&D would have only a modest effect on cost, but would improve performance in other areas, such as safety, waste management, and uranium resource utilization. The U.S. and E.U. experts were in relative agreement regarding how government RD&D funds should be allocated, placing particular focus on very high temperature reactors, sodium-cooled fast reactors, fuels and materials, and fuel cycle technologies.

By analyzing the institutions that have been created to stimulate energy technology innovation in the United States, the United Kingdom, and China—three countries with very different sizes, political systems and cultures, natural resources, and histories of involvement in the energy sector—this article highlights how variations in national objectives and industrial and political environments have translated into variations in policy.

A group of American and European academics working on understanding the future prospects of energy technologies and the role of governments shaping these prospects gathered at Harvard Kennedy School in April. Hosted by Laura Diaz Anadon, director of the Energy Technology Innovation Policy.... the group discussed the need to incorporate uncertainty around technical change, the challenges of utilizing expert elicitations to inform policy decisions using models, and future collaborative work combining different expert elicitations and different energy-economic models.

Dramatic growth in nuclear energy would be required for nuclear power to provide a significant part of the carbon-free energy the world is likely to need in the 21st century, or a major part in meeting other energy challenges. This would require increased support from governments, utilities, and publics around the world. Achieving that support is likely to require improved economics and major progress toward resolving issues of nuclear safety, proliferation-resistance, and nuclear waste management. This is likely to require both research, development, and demonstration (RD&D) of improved technologies and new policy approaches.