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Nuclear power: Understanding the economic risks and uncertainties

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  • Kessides, Ioannis N.

Abstract

This paper identifies the fundamental elements and critical research tasks of a comprehensive analysis of the costs and benefits of nuclear power relative to investments in alternative baseload technologies. The proposed framework seeks to: (i) identify the set of expected parameter values under which nuclear power becomes cost competitive relative to alternative generating technologies; (ii) identify the main risk drivers and quantify their impacts on the costs of nuclear power; (iii) estimate the nuclear power option value; (iv) assess the nexus between electricity market structure and the commercial attractiveness of nuclear power; (v) evaluate the economics of smaller sized nuclear reactors; (vi) identify options for strengthening the institutional underpinnings of the international safeguards regime; and (vii) evaluate the proliferation resistance of new generation reactors and fuel cycles.

Suggested Citation

  • Kessides, Ioannis N., 2010. "Nuclear power: Understanding the economic risks and uncertainties," Energy Policy, Elsevier, vol. 38(8), pages 3849-3864, August.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:8:p:3849-3864
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    1. N, Gilmore & Burr, P.A. & Obbard, E. & Stockings, C. & Kruzic, J.J. & Seitenzahl, I. & Ata, S. & Maartensson, E. & Niven, R.K., 2025. "Discussing possible futures to neutralise nuclear energy discourse," Renewable and Sustainable Energy Reviews, Elsevier, vol. 210(C).
    2. Staffan A Qvist & Barry W Brook, 2015. "Potential for Worldwide Displacement of Fossil-Fuel Electricity by Nuclear Energy in Three Decades Based on Extrapolation of Regional Deployment Data," PLOS ONE, Public Library of Science, vol. 10(5), pages 1-10, May.
    3. Brookes, Naomi J. & Locatelli, Giorgio, 2015. "Power plants as megaprojects: Using empirics to shape policy, planning, and construction management," Utilities Policy, Elsevier, vol. 36(C), pages 57-66.
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    6. Wegel, Sebastian & Czempinski, Victoria & Oei, Pao-Yu & Wealer, Ben, 2019. "Transporting and Storing High-Level Nuclear Waste in the U.S.—Insights from a Mathematical Model," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 9(12), pages 1-23.
    7. Cardin, Michel-Alexandre & Zhang, Sizhe & Nuttall, William J., 2017. "Strategic real option and flexibility analysis for nuclear power plants considering uncertainty in electricity demand and public acceptance," Energy Economics, Elsevier, vol. 64(C), pages 226-237.
    8. Mari, Carlo, 2014. "Hedging electricity price volatility using nuclear power," Applied Energy, Elsevier, vol. 113(C), pages 615-621.
    9. Werner, Dan, 2014. "Electricity Market Price Volatility: The Importance of Ramping Costs," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169619, Agricultural and Applied Economics Association.
    10. Shimada, Go, 2024. "Fukushima Daiichi nuclear power plant impact on regional economies from 1960 to 2010," Renewable and Sustainable Energy Reviews, Elsevier, vol. 203(C).
    11. Jain, Shashi & Roelofs, Ferry & Oosterlee, Cornelis W., 2014. "Decision-support tool for assessing future nuclear reactor generation portfolios," Energy Economics, Elsevier, vol. 44(C), pages 99-112.
    12. Schmeda-Lopez, Diego & McConnaughy, Thomas B. & McFarland, Eric W., 2018. "Radiation enhanced chemical production: Improving the value proposition of nuclear power," Energy, Elsevier, vol. 162(C), pages 491-504.
    13. Huhtala, Anni & Remes, Piia, 2017. "Quantifying the social costs of nuclear energy: Perceived risk of accident at nuclear power plants," Energy Policy, Elsevier, vol. 105(C), pages 320-331.
    14. Huhtala, Anni & Remes, Piia, 2016. "Dimming Hopes for Nuclear Power: Quantifying the Social Costs of Perceptions of Risks," Working Papers 57, VATT Institute for Economic Research.
    15. Linares, Pedro & Conchado, Adela, 2013. "The economics of new nuclear power plants in liberalized electricity markets," Energy Economics, Elsevier, vol. 40(S1), pages 119-125.
    16. Milstein, Irena & Tishler, Asher, 2011. "Intermittently renewable energy, optimal capacity mix and prices in a deregulated electricity market," Energy Policy, Elsevier, vol. 39(7), pages 3922-3927, July.
    17. Roh, Seungkook & Kim, Wonjoon, 2014. "How can Korea secure uranium enrichment and spent fuel reprocessing rights?," Energy Policy, Elsevier, vol. 68(C), pages 195-198.
    18. Jacobson, Mark Z. & Delucchi, Mark A., 2011. "Providing all global energy with wind, water, and solar power, Part I: Technologies, energy resources, quantities and areas of infrastructure, and materials," Energy Policy, Elsevier, vol. 39(3), pages 1154-1169, March.
    19. Khatib, Hisham & Difiglio, Carmine, 2016. "Economics of nuclear and renewables," Energy Policy, Elsevier, vol. 96(C), pages 740-750.
    20. Lucheroni, Carlo & Mari, Carlo, 2017. "CO2 volatility impact on energy portfolio choice: A fully stochastic LCOE theory analysis," Applied Energy, Elsevier, vol. 190(C), pages 278-290.

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