The economics of new nuclear power plants in liberalized electricity markets
AbstractEven after Fukushima, the nuclear debate is strong in many countries, with the discussion of its economics being a significant part of it. However, most of the estimates are based on a levelized-cost methodology, which presents several shortcomings, particularly when applied to liberalized electricity markets. Our paper provides results based on a different methodology, by which we determine the break-even investment cost for nuclear power plants to be competitive with other electricity generation technologies. Our results show that the cost competitiveness of nuclear power plants is questionable, and that public support of some sort would be needed if new nuclear power plants are to be built in liberalized markets.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Energy Economics.
Volume (Year): 40 (2013)
Issue (Month): S1 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/eneco
Nuclear power; Economics; Liberalized electricity markets;
Other versions of this item:
- Adela Conchado & Pedro Linares, 2010. "The Economics of New Nuclear Power Plants in Liberalized Electricity Markets," Working Papers 04-2010, Economics for Energy.
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
- Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
- L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peter Navarro, 1988. "Comparative Energy Policy: The Economics of Nuclear Power in Japan and the United States," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 1-15.
- Fabien A. Roques & William J. Nuttall & David M. Newbery & Richard de Neufville & Stephen Connors, 2006.
"Nuclear Power: A Hedge against Uncertain Gas and Carbon Prices?,"
The Energy Journal,
International Association for Energy Economics, vol. 0(Number 4), pages 1-24.
- Roques, F.A. & Nuttall, W.J. & Newbery, D.M. & de Neufville, R., 2005. "Nuclear Power: a Hedge against Uncertain Gas and Carbon Prices?," Cambridge Working Papers in Economics 0555, Faculty of Economics, University of Cambridge.
- Koomey, Jonathan & Hultman, Nathan E., 2007. "A reactor-level analysis of busbar costs for US nuclear plants, 1970-2005," Energy Policy, Elsevier, vol. 35(11), pages 5630-5642, November.
- Beerten, Jef & Laes, Erik & Meskens, Gaston & D'haeseleer, William, 2009. "Greenhouse gas emissions in the nuclear life cycle: A balanced appraisal," Energy Policy, Elsevier, vol. 37(12), pages 5056-5068, December.
- Paul L. Joskow, 2011.
"Comparing the Costs of Intermittent and Dispatchable Electricity Generating Technologies,"
EUI-RSCAS Working Papers
45, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
- Paul L. Joskow, 2011. "Comparing the Costs of Intermittent and Dispatchable Electricity Generating Technologies," American Economic Review, American Economic Association, vol. 101(3), pages 238-41, May.
- Paul L. Joskow, 2010. "Comparing the Costs of Intermittent and Dispatchable Electricity Generating Technologies," Working Papers 1013, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
- Paul L. Joskow, 2011. "Comparing the Costs of Intermittent and Dispatchable Electricity Generating Technologies," RSCAS Working Papers 2011/45, European University Institute.
- Lucas W. Davis & Catherine Wolfram, 2011.
"Deregulation, Consolidation, and Efficiency: Evidence from U.S. Nuclear Power,"
NBER Working Papers
17341, National Bureau of Economic Research, Inc.
- Lucas W. Davis & Catherine Wolfram, 2012. "Deregulation, Consolidation, and Efficiency: Evidence from US Nuclear Power," American Economic Journal: Applied Economics, American Economic Association, vol. 4(4), pages 194-225, October.
- Kennedy, David, 2007. "New nuclear power generation in the UK: Cost benefit analysis," Energy Policy, Elsevier, vol. 35(7), pages 3701-3716, July.
- Sovacool, Benjamin K., 2008. "Valuing the greenhouse gas emissions from nuclear power: A critical survey," Energy Policy, Elsevier, vol. 36(8), pages 2940-2953, August.
- Nuttall, W.J. & Taylor, S, 2008. "Financing the Nuclear Renaissance," Cambridge Working Papers in Economics 0829, Faculty of Economics, University of Cambridge.
- Lucas W. Davis, 2012.
"Prospects for Nuclear Power,"
Journal of Economic Perspectives,
American Economic Association, vol. 26(1), pages 49-66, Winter.
- Geoffrey Rothwell, 2006. "A Real Options Approach to Evaluating New Nuclear Power Plants," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 87-54.
- Lina Escobar Rangel & François Lévêque, 2012. "Revisiting the cost escalation curse of nuclear power: New lessons from the French experience," Working Papers hal-00780566, HAL.
- Corner, Adam & Venables, Dan & Spence, Alexa & Poortinga, Wouter & Demski, Christina & Pidgeon, Nick, 2011. "Nuclear power, climate change and energy security: Exploring British public attitudes," Energy Policy, Elsevier, vol. 39(9), pages 4823-4833, September.
- Kahouli, Sondès, 2011. "Effects of technological learning and uranium price on nuclear cost: Preliminary insights from a multiple factors learning curve and uranium market modeling," Energy Economics, Elsevier, vol. 33(5), pages 840-852, September.
- David Newbery, 2010.
"A Nuclear Future? Uk Government Policy And The Role Of The Market,"
Wiley Blackwell, vol. 30(2), pages 21-27, 06.
- Newbery, D., 2010. "A Nuclear Future? UK Government Policy and the Role of the Market?," Cambridge Working Papers in Economics 1019, Faculty of Economics, University of Cambridge.
- Kessides, Ioannis N., 2010. "Nuclear power: Understanding the economic risks and uncertainties," Energy Policy, Elsevier, vol. 38(8), pages 3849-3864, August.
- Grubler, Arnulf, 2010. "The costs of the French nuclear scale-up: A case of negative learning by doing," Energy Policy, Elsevier, vol. 38(9), pages 5174-5188, September.
- Kessides, Ioannis N., 2012. "The future of the nuclear industry reconsidered: Risks, uncertainties, and continued promise," Energy Policy, Elsevier, vol. 48(C), pages 185-208.
- Thomas, Steve, 2010. "Competitive energy markets and nuclear power: Can we have both, do we want either?," Energy Policy, Elsevier, vol. 38(9), pages 4903-4908, September.
- Linares, P. & Santos, F.J. & Pérez-Arriaga, I.J., 2008. "Scenarios for the evolution of the Spanish electricity sector: Is it on the right path towards sustainability?," Energy Policy, Elsevier, vol. 36(11), pages 4057-4068, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.