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The Adoption of Nuclear Power Generation

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  • Paul Sommers

Abstract

This article develops a model of the innovation adoption decision. The model allows the economic situation of a utility and its perception of uncertainty associated with an innovation to affect the probability of adopting it. This model is useful when uncertainties affecting decisions about adoption persist throughout the diffusion process, thereby making the usual adoption model implicit in rate-of-diffusion studies inappropriate. An empirical test of the model finds that firm size, power pool size, and selected aspects of uncertainty about the innovation are significant predictors of U.S. utility companies' decisions on whether or not to adopt nuclear power generation.

Suggested Citation

  • Paul Sommers, 1980. "The Adoption of Nuclear Power Generation," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 283-291, Spring.
  • Handle: RePEc:rje:bellje:v:11:y:1980:i:spring:p:283-291
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    Cited by:

    1. Blackman, Allen, 1999. "The Economics of Technology Diffusion: Implications for Climate Policy in Developing Countries," Discussion Papers 10574, Resources for the Future.
    2. Nancy L. Rose & Paul L. Joskow, 1990. "The Diffusion of New Technologies: Evidence from the Electric Utility Industry," RAND Journal of Economics, The RAND Corporation, vol. 21(3), pages 354-373, Autumn.
    3. Stephen Farber, 1991. "Nuclear Power, Systematic Risk, And The Cost Of Capital," Contemporary Economic Policy, Western Economic Association International, vol. 9(1), pages 73-82, January.
    4. Emin M. Dinlersoz & Ruben Hernandez-Murillo, 2004. "The diffusion of electronic business in the U.S," Working Papers 2004-009, Federal Reserve Bank of St. Louis.

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