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Risks and Psychic Costs of Alternative Energy Sources for Generating Electricity

Miller B. Spangler

Year: 1981
Volume: Volume 2
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol2-No1-3
View Abstract

Abstract:
According to public opinion polls, many people in the United States do not agree that there is truly an energy crisis. President Carter referred to it as an "invisible" crisis in the National Energy Plan of 1977.



Will President Reagan's Energy Policy Lead Households to Conserve?

Eric S. Brown

Year: 1982
Volume: Volume 3
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol3-No1-5
View Abstract

Abstract:
When energy was cheap and easily available, consumers' paid little attention to their energy use and bills, so after the supply disruptions of the1970s, they were poorly equipped to deal with the changes they faced in energy prices and availability. During the 1970s, the federal government undertook various programs of education and assistance, including dissemination of printed information, establishment of energy standards for federally financed homes, and tax credits for use of alternative energy sources.









Notes - Risk Analysis of Alternative Energy Sources

Daniel R. Kazmer

Year: 1982
Volume: Volume 3
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol3-No1-11
No Abstract



Reply to "Risk Analysis of Alternative Energy Sources"

Miller B. Spangler

Year: 1982
Volume: Volume 3
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol3-No1-12
No Abstract



Wood Energy Bibliography

n/a

Year: 1982
Volume: Volume 3
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol3-No1-13
No Abstract





Notes - Comment on "Economic Implications of Mandated Efficiency..."

Stanley M. Besen and Leland L. Johnson

Year: 1982
Volume: Volume 3
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol3-No1-9
No Abstract



Risk-Bearing and the Choice of Contract Forms for Oil Exploration and Development

Charles R. Blitzer, Donald R. Lessard, and James L. Paddock

Year: 1984
Volume: Volume 5
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol5-No1-1
View Abstract

Abstract:
The structure of taxes and fiscal contracts between host countries and foreign companies has major implications for the success of oil development projects. This is because of several key characteristics of such projects: large investment outlays, long lead times to project completion, and long periods of project output and payout. These characteristics usually are coupled with an incomplete sharing of information and technology, and significant differences in the ability of the various parties to bear the risks involved. These characteristics often lead to unstable contracts and, in many cases, to the failure to develop projects that are economically attractive in aggregate terms but unattractive to one or both parties because of uncertainties over sharing project risks and returns.



Deregulating the Generation of Electricity Through the Creation of Spot Markets for Bulk Power

Roger E. Bohn, Bennett W. Golub, Richard D. Tabors, and Fred C. Schweppet

Year: 1984
Volume: Volume 5
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol5-No2-5
View Abstract

Abstract:
Many observers are dissatisfied with the current condition of privately owned electric utilities in the United States. Numerous pro-posals have been made for change, including suggestions to deregulate all or part of the industry.' Those who favor deregulation argue that electric power systems, and especially electric generation, may no longer be natural monopolies. Furthermore, under the present regulatory regime, many utilities are refraining from investing, which is not in the best interests of their customers.2 Others, however, worry that quality and reliability of1. See Golub (1982, Chapter 2) for a review of the literature on deregulating electricutilities.2. A major electric utility's internal planning documents discussed the problem as follows. The ability to raise new capital is finite, and is especially limited given the current financial condition, the economy, and the regulatory climate. Thus, although the recommended investments ... will lead to a correct economic decision ... they may not be desirable due to other constraints [on the company] ... The document goes on to report that the company is not investing in coal projects, although such projects' long-term cost is one-third less than current anticipated generating costs.



Exploration Risks and Mineral Taxation: How Fiscal Regimes Affect Exploration Incentives

T. R. Stauffer and John C. Gault

Year: 1985
Volume: Volume 6
Number: Special Issue
DOI: 10.5547/ISSN0195-6574-EJ-Vol6-NoSI-10
No Abstract



Risk and Cost of Failure in the French Electricity System

Lucien Gouni and Phillippe Torrion

Year: 1988
Volume: Volume 9
Number: Special Issue 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol9-NoSI2-3
No Abstract



The Impact of Nuclear Power on the Systematic Risk and Market Value of Electric Utility Common Stock

Russell l. Fuller, George W. Hinman and Thomas C. Lowinger

Year: 1990
Volume: Volume 11
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol11-No2-7
View Abstract

Abstract:
The objective of this study is to determine whether investors perceive utilities with nuclear plants to be more risky than utilities with no nuclear facilities. Two basic analytical frameworks are used. One approach is to analyze investors' differential perception of the market-related systematic risk of nuclear utility stocks versus non-nuclear utility stocks. This is done by comparing the betas of nuclear versus non-nuclear utility stocks. The second approach is an econometric treatment of price to book value ratios, using cross-sectional data in the time period 1973 to 1987. For both approaches, the differences in the financial markets' perception of risk, related to the special events of TMI, Chernobyl and the WPPSS bond default; are analyzed. Based on the cross-sectional analysis of P/BV ratios in recent years, we estimate the financial markets valued nuclear power utilities at approximately 20% less than comparable non-nuclear utilities. We estimate that a 3% increase in the allowed rate of return for nuclear utilities (from 13.7% to 16.7% in 1988) would have been necessary to fully offset the discount associated with nuclear power.



Chapter 15 - Managing Qualified Nuclear Decommissioning Trust Funds Under Uncertainty

Howard Hiller

Year: 1991
Volume: Volume 12
Number: Special Issue
DOI: 10.5547/ISSN0195-6574-EJ-Vol12-NoSI-15
View Abstract

Abstract:
Funds for the eventual decommissioning and removal of nuclear power plants are accumulating. The amount will total many tens, perhaps hundreds of billions, of dollars. One of the ingredients in setting aside these funds is managing them so as to assure that just enough cash is on hand at the time of decommissioning to meet all required expenses at the lowest possible net present value cost to utility ratepayers. As with any investment, there can be a variety of opinions. For this reason, it is important to consult several sources for advice on the investment of such nuclear decommissioning trust funds (NDTs). The next three chapters provide such advice from the perspective of three different firms. The first, by Howard Hiller, stresses the importance of an adaptive approach, pointing out that the most difficult question is the choice of investment maturities. Hiller employs a simulation methodology to quantify the riskcost characteristics of strategies along the maturity spectrum--from short to long-term. He identifies some of the unique uncertainties inherent in decommissioning and brings these uncertainties into his analysis. He concludes that the steepness of the municipal yield curve can be exploited even in the presence of inflationary uncertainty.



Chapter 18 - Confronting Uncertainty: Contingency Planning for Decommissioning

Bruce Biewald and Stephen Bernow

Year: 1991
Volume: Volume 12
Number: Special Issue
DOI: 10.5547/ISSN0195-6574-EJ-Vol12-NoSI-18
View Abstract

Abstract:
Contingency factors are a standard ingredient in all types of estimated costs. The actual contingency figure used, however, is always open to question. Given the absence of large-scale decommissioning projects, the long future time reference, the history of early shutdowns, and possibility of accidents, there continues to be a substantial controversy regarding the contingency level that is most appropriate. In this chapter, Bruce Biewald and Stephen Bernow present a critical review of the matter of contingency factors, arguing that current common levels in the neighborhood of 25 percent are too low.



A Risk Analysis of Oil Development in the Arctic National Wildlife Refuge

Stephen G. Powell

Year: 1991
Volume: Volume 12
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol12-No3-5
View Abstract

Abstract:
The Arctic National Wildlife Refuge (ANWR) in Alaska is simultaneously the most promising onshore area for oil exploration and one of the wildest areas remaining in the USA. The conflict between the need to develop energy resources and the desire to preserve wild areas has led to a prolonged debate over the merits of programs to lease the region for oil exploration and development.




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