ABSTRACT
On a number of occasions the conference turned its attention to the reasons for government intervention in energy R&D activity. In addition to externalities and the considerations of traditional welfare economics discussed in Part I and Appendix I, a number of participants argued that the government had an obligation to mitigate the adverse effects of major changes in public policy, such as the rising monetary and environmental costs associated with Project Independence. Others felt that public support for energy R&D should be used as a strategic tool in bargaining with the Arabs and others threatening to cut off our energy supplies or to increase prices appreciably through cartel activity. Finally, several participants expressed the opinion that the government should not support energy R&D at the advanced stages of development. One or two even questioned whether government intervention in early stages of the R&D process was desirable.
