Working Paper: NBER ID: w17674
Authors: Lucas W. Davis
Abstract: The prospects for a revival of nuclear power were dim even before the partial reactor meltdowns at the Fukushima nuclear plant. Nuclear power has long been controversial because of concerns about nuclear accidents, proliferation risk, and the storage of spent fuel. These concerns are real and important. In addition, however, a key challenge for nuclear power has been the high cost of construction for nuclear plants. Construction costs are high enough that it becomes difficult to make an economic argument for nuclear, even before incorporating these external costs. This is particularly true in countries like the United States where recent technological advances have dramatically increased the availability of natural gas.
Keywords: No keywords provided
JEL Codes: L51; L94; Q40; Q53
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| High Construction Costs (L74) | Economic Viability of Nuclear Power (L94) |
| Natural Gas Prices (Q31) | Competitiveness of Nuclear Power (L94) |
| Regulatory Risks (G18) | Nuclear Power Viability (L94) |
| External Costs and Market Conditions (D49) | Competitiveness of Nuclear Power (L94) |
| Carbon Pricing (D49) | Economic Landscape for Nuclear Power (L94) |