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Implications of small modular reactors for climate change mitigation

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  • Iyer, Gokul
  • Hultman, Nathan
  • Fetter, Steve
  • Kim, Son H.

Abstract

Achieving climate policy targets will require large-scale deployment of low-carbon energy technologies, including nuclear power. The small modular reactor (SMR) is viewed as a possible solution to the problems of energy security as well as climate change. In this paper, we use an integrated assessment model (IAM) to investigate the evolution of a global energy portfolio with SMRs under a stringent climate policy. Technology selection in the model is based on costs; we use results from previous expert elicitation studies of SMR costs. We find that the costs of achieving a 2°C target are lower with SMRs than without. The costs are higher when large reactors do not compete for market share compared to a world in which they can compete freely. When both SMRs and large reactors compete for market share, reduction in mitigation cost is achieved only under advanced assumptions about SMR technology costs and future cost improvements. While the availability of SMRs could lower mitigation costs by a moderate amount, actual realization of these benefits would depend on the rapid up-scaling of SMRs in the near term. Such rapid deployment could be limited by several social, institutional and behavioral obstacles.

Suggested Citation

  • Iyer, Gokul & Hultman, Nathan & Fetter, Steve & Kim, Son H., 2014. "Implications of small modular reactors for climate change mitigation," Energy Economics, Elsevier, vol. 45(C), pages 144-154.
    • Handle: RePEc:eee:eneeco:v:45:y:2014:i:c:p:144-154
    DOI: 10.1016/j.eneco.2014.06.023
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    Cited by:

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    2. Jānis Krūmiņš & Māris Kļaviņš, 2023. "Investigating the Potential of Nuclear Energy in Achieving a Carbon-Free Energy Future," Energies, MDPI, vol. 16(9), pages 1-31, April.
    3. Jonas Siegel & Elisabeth A. Gilmore & Nancy Gallagher & Steve Fetter, 2018. "An Expert Elicitation of the Proliferation Resistance of Using Small Modular Reactors (SMR) for the Expansion of Civilian Nuclear Systems," Risk Analysis, John Wiley & Sons, vol. 38(2), pages 242-254, February.
    4. Elaheh Shobeiri & Filippo Genco & Daniel Hoornweg & Akira Tokuhiro, 2023. "Small Modular Reactor Deployment and Obstacles to Be Overcome," Energies, MDPI, vol. 16(8), pages 1-19, April.
    5. Young Jin Kim & Byung Jin Lee & Kunwoo Yi & Yoon Jae Choe & Min Chul Lee, 2020. "Numerical Study on the Effects of Relative Diameters on the Performance of Small Modular Reactors Driven by Natural Circulation," Energies, MDPI, vol. 13(22), pages 1-17, November.
    6. Vegel, Benjamin & Quinn, Jason C., 2017. "Economic evaluation of small modular nuclear reactors and the complications of regulatory fee structures," Energy Policy, Elsevier, vol. 104(C), pages 395-403.
    7. Dong, Zhe & Liu, Miao & Zhang, Zuoyi & Dong, Yujie & Huang, Xiaojin, 2019. "Automatic generation control for the flexible operation of multimodular high temperature gas-cooled reactor plants," Renewable and Sustainable Energy Reviews, Elsevier, vol. 108(C), pages 11-31.
    8. Carlo L. Vinoya & Aristotle T. Ubando & Alvin B. Culaba & Wei-Hsin Chen, 2023. "State-of-the-Art Review of Small Modular Reactors," Energies, MDPI, vol. 16(7), pages 1-30, April.
    9. Michaelson, D. & Jiang, J., 2021. "Review of integration of small modular reactors in renewable energy microgrids," Renewable and Sustainable Energy Reviews, Elsevier, vol. 152(C).

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    More about this item

    Keywords

    Small modular reactor; Climate change; Nuclear; Integrated assessment model;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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