Economics of New Nuclear Power Plants - Other Economic Issues

Other Economic Issues

Ethicist Kristin Shrader-Frechette analysed 30 papers on the economics of nuclear power for possible conflicts of interest. She found of the 30, 18 had been funded either by the nuclear industry or pro-nuclear governments and were pro-nuclear, 11 were funded by universities or non-profit non-government organisations and were anti-nuclear, the remaining 1 had unknown sponsors and took the pro-nuclear stance. The pro-nuclear studies were accused of using cost-trimming methods such as ignoring government subsides and using industry projections above empirical evidence where ever possible. The situation was compared to medical research were 98% of industry sponsored studies return positive results.

Nuclear Power plants tend to be very competitive in areas where other fuel resources are not readily available — France, most notably, has almost no native supplies of fossil fuels. France's nuclear power experience has also been one of paradoxically increasing rather than decreasing costs over time.

Making a massive investment of capital in a project with long-term recovery might impact a company's credit rating.

A Council on Foreign Relations report on nuclear energy argues that a rapid expansion of nuclear power may create shortages in building materials such as reactor-quality concrete and steel, skilled workers and engineers, and safety controls by skilled inspectors. This would drive up current prices. It may be easier to rapidly expand, for example, the number of coal power plants, without this having a large effect on current prices.