Nuclear expansion or phase-out? Costs and opportunities

Nuclear expansion or phase-out? Costs and opportunities / Enrica De Cian, Samuel Carrara, Massimo Tavoni, Vox.EU, 22/12/2013

http://www.voxeu.org/article/fukushima-and-future-nuclear-power

After the Fukushima incident in 2011, many countries decided to shrink their nuclear power programmes. This article presents recent research on the optimal role of nuclear power in reducing carbon emissions. Phasing out nuclear power would be costly, since it is currently the cheapest low-carbon alternative to fossil fuels. However, these costs would be largely offset by the implicit subsidy to R&D in renewables, which suffers from innovation externalities. Still, carbon pricing and explicit R&D subsidies would be a more efficient way of determining the future of nuclear power…


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