Science, Technology, and Public Policy

The attached document contains March 2018 updates to our database on U.S. government investments in energy research, development, demonstration, and deployment (ERD3) through the Department of Energy.

This report recommends policies and actions to improve the return on investment the U.S. government makes in sponsoring research and development (R&D) at the Department of Energy's (DOE) seventeen National Laboratories ("Labs"). While the Labs make a unique and significant contribution to all of the Department of Energy's missions, the authors develop the idea that for the Labs to fully support DOE's energy transformation goals, their R&D management practices need to be updated to better reflect current research into innovation systems and management. They also highlight the necessity of Lab interactions with industry in order to impact the nation's energy infrastructure investment, which is, for the most part, privately held.

"Engineering research, the exploration of new tools and technologies for manipulating and observing our world, has long been vital to humanity. The invention of the blue LED...is just one recent example—one that, along with many others such as the light bulb, the steam engine, and solar photovoltaics, is transforming humanity's relationship with energy. Perhaps most importantly, engineering research does not follow from (and the blue LED even contradicted!) the scientific understanding of the time. Engineering research has a way of surprising us, most notably when it provides new windows into nature."

Many economists have long held that carbon pricing—either through a carbon tax or cap-and-trade—is the most cost-effective way to decarbonize energy systems, along with subsidies for basic research and development. Meanwhile, green innovation and industrial policies aimed at fostering low-carbon energy technologies have proliferated widely. Most of these predate direct carbon pricing. Low-carbon leaders such as California and the European Union (EU) have followed a distinct policy sequence that helps overcome some of the political challenges facing low-carbon policy by building economic interest groups in support of decarbonization and reducing the cost of technologies required for emissions reductions. However, while politically effective, this policy pathway faces significant challenges to environmental and cost effectiveness.

The attached document contains the June 2017 updates to the authors' database on U.S. government investments in energy research, development, demonstration, and deployment (ERD3) through the Department of Energy.

As assistant to the president for science and technology, director of the White House Office for Science and Technology Policy, and co-chair of the President’s Council of Advisors on Science and Technology (PCAST), Holdren has worked closely with Obama to reinvigorate America’s scientific capabilities on a range of policy fronts, from climate change and renewable energy to health care and nanotechnology.

"The Department of Energy's (DOE's) National Laboratories are a core engine of the U.S. national innovation system but one in urgent need of a tune-up if the United States is to meet the pressing challenges of energy security and climate change mitigation. The next administration and Congress must modernize the policy framework shaping the National Labs to allow them to more effectively drive the innovation necessary to meet energy policy priorities."

Accelerating the development and deployment of energy technologies is a pressing challenge. Doing so will require policy reform that improves the efficacy of public research organizations and strengthens the links between public and private innovators. With their US$14 billion annual budget and unique mandates, the US National Laboratories have the potential to critically advance energy innovation, yet reviews of their performance find several areas of weak organizational design. This article discusses the challenges the National Laboratories face in engaging the private sector, increasing their contributions to transformative research, and developing culture and management practices to better support innovation. The authors also offer recommendations for how policymakers can address these challenges.

This document contains March 2016 updates to our database on U.S. government investments in energy research, development, demonstration, and deployment (ERD3) through the Department of Energy. The database, in Microsoft Excel format, tracks DOE appropriations from FY 1978–2016 and the 2017 budget request and includes funding for ERD3 from the American Recovery and Reinvestment Act of 2009. It also includes several charts.

In order to make R&D funding decisions to meet particular goals, such as mitigating climate change or improving energy security, or to estimate the social returns to R&D, policy makers need to combine the information provided in this study on cost reduction potentials with an analysis of the macroeconomic implications of these technological changes. The authors conclude with recommendations for future directions on energy expert elicitations.