ABSTRACT
Part I concluded that traditional welfare theory was of no practical use in determining energy R&D policy because the information needed on marginal social costs and benefits was not available. In place of this approach, it recommended a procedure that involves, first, setting societal goals for the energy sector through the political process, and then, identifying and comparing the alternatives available to the government for realizing the stipulated goals. During the conference two lines of questioning arose regarding the desirability of this procedure. The first concerns the ability of the political process to give clear signals regarding desired societal goals. The second involves the role of benefit-cost analysis in establishing goals and priorities for energy policy in general and energy R&D in particular. Related to the latter, reservations were also voiced about the use of time discounting in appraising the benefits from certain types of R&D projects.
