Prospects for Nuclear Power

Lucas W. Davis
Journal of Economic Perspectives, 2012, 26(1), 49-66.
Journal Article
Manuscript
EI@Haas Working Paper
NBER Working Paper
RFF Commentary
Blog Post ("A Small Bet with Big Stakes")

Abstract:

The prospects for a revival of U.S. nuclear power were dim even before the tragic events at the Fukushima nuclear plant. Nuclear power has long been controversial because of concerns about nuclear accidents, proliferation risk, and the storage of spent fuel. These concerns are real and important. In the end, however, the key challenge for U.S. nuclear power is the high cost of construction for nuclear reactors. This article reviews the historical record of reactor orders and construction costs in the United States, highlighting some of the insights from the cancellations and cost overruns that have characterized the industry