Prospects for Nuclear Power: Financing Risks

-More so than other types of power plant production, nuclear power plants face a lot of regulatory risk. This means that they risk the change of regulations and laws that might affect the industry; changes in cost, etc… (p.55)

-However there have been efforts to streamline this process such as pre-approving designs, getting site permits early, and combining construction and operating licenses. (p.55)

-Nuclear power is also highly sensitive to each current federal energy policy. Under the Obama administration, members of congress voted for a “clean energy standard” which supported nuclear energy. Under the current legislation, it is unclear what the future of nuclear energy will be. (p.55)

-The decrease in fossil fuel prices also impacts the need and desire for nuclear power plants. Technology such as hydro-fracking has increased the availability of natural gas at a low cost. (p.55)

– It is apparent that some new form of alternative technology is necessary to face future needs. Whether this be in the form of nuclear energy, or a lower-cost and sustainable alternative, the future relies on the implementation of such forms of power. (p.56)



Davis, Lucas W. 2012. “Prospects for Nuclear Power.” Journal of Economic Perspectives, 26(1):49-66.

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