We wish to thank two anonymous reviewers and editor Brad Humphries for constructive comments that we feel have improved the quality of this article. We also thank John Polimeni and Raluca Iorgulescu for additional comments.
RENAISSANCE OR REQUIEM: IS NUCLEAR ENERGY COST EFFECTIVE IN A POST-FUKUSHIMA WORLD?
Version of Record online: 3 OCT 2012
© 2012 Western Economic Association International
Contemporary Economic Policy
Volume 31, Issue 4, pages 691–707, October 2013
How to Cite
SCHWARZ, P. M. and COCHRAN, J. A. (2013), RENAISSANCE OR REQUIEM: IS NUCLEAR ENERGY COST EFFECTIVE IN A POST-FUKUSHIMA WORLD?. Contemporary Economic Policy, 31: 691–707. doi: 10.1111/j.1465-7287.2012.00341.x
- Issue online: 23 AUG 2013
- Version of Record online: 3 OCT 2012
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)