and, the outputs will either have to be transmitted back to urban/industrial load centers or a significant proportion of the load will have to relocate to areas within which SPS outputs can be transmitted economically. As discussed in the previous section, the availability and cost of electricity are primary factors that will influence electrically intense industries to move toward rectenna sites. However, in lieu of relocation, firms may consider a range of options depending upon the availability and price of SPS electricity relative to other forms of electricity generation. Firms may decide to stay in their present locations and reduce their electric demand by lowering production, altering their manufacturing process(es) or diversifying their product line. Some firms may decide against relocation and develop their own generating facilities to supply a growing demand for electricity. Alternatively, firms may choose from a set of options mid-range between relocating and staying in their present locations. These mid-range options would include decisions to relocate only new facilities, relocation of electrically-intense processes with shipment of component products to assembly plants or, the payment of premium utility rates to cover the cost of transmission, thereby eliminating the need to move toward a rectenna site. Future research dealing with the economic and demographic implications of SPS should examine the industry-specific sensitivity of firm mobility to the future availability and cost of electricity. An understanding of this sensitivity is critical to estimating movements of population (i.e., labor and dependents) that can be expected to follow. 4.2.2.4 Government Options to Stimulate Utilization of SPS Outputs Business decisions are, to a large extent, influenced by government policies and it may be necessary for the federal government to develop incentives that initially stimulate the market for SPS outputs. Such inducements may include tax incentives, federal loan guarantees for new facilities developed within rectenna service areas, relocation subsidies or, grants-in-aid to industrial consortia that would relocate electrically-dependent and interrelated processes. As indicated above, current law and the existing U.S. political structure militate against policies that would provide economic advantages for the development of new areas at the expense of degenerating existing centers of economic activity. Again, we emphasize that any federal incentives to stimulate the use of SPS outputs must be carefully examined before they can be suggested for policy.
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