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RENAISSANCE OR REQUIEM: IS NUCLEAR ENERGY COST EFFECTIVE IN A POST‐FUKUSHIMA WORLD?
Author(s) -
SCHWARZ PETER M.,
COCHRAN JOSEPH A.
Publication year - 2013
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.2012.00341.x
Subject(s) - nuclear power , natural resource economics , fossil fuel , nuclear power plant , nuclear plant , economics , the renaissance , business , environmental economics , engineering , waste management , nuclear engineering , nuclear physics , physics , art , art history
In the aftermath of Fukushima, decisions to slow or stop the future use of nuclear power have not been based on rational economic analysis. We find that there are cost‐effective technologies that would greatly mitigate future natural disasters. Even if the U.S. nuclear industry adopted new safety technologies and paid the full cost of insurance and borrowing, it is more efficient to continue to use existing nuclear plants than to replace them with new fossil fuel plants. However, new nuclear plant costs can exceed fossil fuel alternatives if the price of carbon emissions is below $118/ton . ( JEL Q40, Q48, Q54)