Nuclear Power Facilities

773 WordsFeb 4, 20183 Pages
Economic Costs The cost of a nuclear power facility is more complicated when dealing in particular with the initial capital costs of nuclear power plants. Furthermore, it is important to understand that the investment cost of a nuclear power plant is extremely high. Ernest Moniz, United States Secretary of Energy, estimates that the cost of investing in nuclear power plants has increased substantially (Moniz 2011). According to Moniz, “New regulations will inevitably increase the costs of nuclear power, and nuclear power plants, with a price tag of around $6-$10 billion each, are already much more expensive to build than are plants powered by fossil fuels” (Moniz 2011). Despite the high price of the initial investment, the capital costs of nuclear power plants are expected to decrease in the future. In addition to high capital costs, Economist Ian Shultz identifies added risks that are associated with investing in a nuclear power plant. A few of Shultz identified costs for construction of a new nuclear power plant involves risk in construction delays, public opposition, and changes in the regulatory environment (Shultz 2012). Additional overheads that nuclear power plants generate are the market failures resulting from the negative externalities generated by nuclear power. The negative externalities of nuclear energy must be factored into the economic costs of nuclear energy. One of the negative externalities associated with nuclear energy is the environmental damages
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