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Economic impacts of a premature nuclear phase-out in Switzerland

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  • Böhringer, Christoph
  • Wickart, Marcel
  • Müller, Andre

Abstract

This paper investigates the economic impacts of two policy proposals: "Strom ohne Atom" (SOA) and "Moratorium Plus" (MOP), both of which contain a premature phase-out of nuclear power in Switzerland. While MOP restricts business-as-usual operation time of existing nuclear power plants to 40 years, which results in a cutback of 10-20 years, SOA foresees a reduction in operation time of 20-30 years and administers combined heat and power to substitute for nuclear energy. Based on simulations with an intertemporal multi-sector general equilibrium model of the Swiss economy, we quantify the price tags for risk reduction from nuclear power operation given additional constraints on back-up technologies. Costs of accelerating the phase-out of nuclear power for an average household amount to 200 CHF/a over the next 45 years under SOA and drop to 60 CHF/a in the case of MOP. If Switzerland were to assure carbon neutrality of a premature phase-out by the use of carbon taxes, adjustment costs would increase to 230 CHF under SOA and 110 CHF under MOP.

Suggested Citation

  • Böhringer, Christoph & Wickart, Marcel & Müller, Andre, 2001. "Economic impacts of a premature nuclear phase-out in Switzerland," ZEW Discussion Papers 01-68, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:5424
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    References listed on IDEAS

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    1. Bohringer, Christoph, 1998. "The synthesis of bottom-up and top-down in energy policy modeling," Energy Economics, Elsevier, vol. 20(3), pages 233-248, June.
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    More about this item

    Keywords

    nuclear phase-out; computable general equilibrium;

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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