Publication Laka-library:
All risk, no reward for taxpayers and ratepayers: The Economics of subsidizing the ‘Nuclear Renaissance’ with loan guarantees and construction work in progress
Author | Mark Cooper, IEER |
6-01-0-10-83.pdf | |
Date | November 2009 |
Classification | 6.01.0.10/83 (COSTS) |
Front |
From the publication:
ALL RISK, NO REWARD FOR TAXPAYERS AND RATEPAYERS THE ECONOMICS OF SUBSIDIZING THE ‘NUCLEAR RENAISSANCE’ WITH LOAN GUARANTEES AND CONSTRUCTION WORK IN PROGRESS Mark Cooper Senior Fellow for Economic Analysis Institute for Energy and the Environment Vermont Law School November 2009 TABLE OF CONTENTS ISSUE BRIEF 1 The Nuclear Industry’s Demands for Direct Subsidies Nuclear Reactors are Uneconomic and Highly Risky Subsidies for Nuclear Reactor Construction Harm Taxpayers and Ratepayers The Bottom Line on Nuclear Reactors I. INTRODUCTION 8 A. Shifting Risks and Costs to Taxpayers and Ratepayers B. Outline II. ASSESSING THE ECONOMIC RISK OF NUCLEAR REACTORS 10 A. The Importance of Properly Allocating Risk B. The Risk of Nuclear Reactors Imposed on Taxpayers and Ratepayers C. The Risks Facing Nuclear Reactors D. The Bottom Line for Taxpayers And Ratepayers Nuclear Reactors are High Risk, High Cost Ventures Subsidies will Impose Severe Financial Harm on Taxpayers and Ratepayers Environmental Externality Arguments Do Not Justify Subsidies E. Conclusion III. THE RISK OF NUCLEAR REACTORS IN THE EYES OF INDUSTRY 20 ANALYSTS A. Moody’s B. Standard & Poor’s C. Consulting Firms IV. EMPIRICAL EVIDENCE OF THE INCREASING RISK OF NUCLEAR 29 REACTORS AT THE NATIONAL LEVEL A. Technology Risk B. Policy Risk C. Regulatory Risk D. Execution Risks E. Marketplace Risks Demand Natural Gas Prices F. Financial Risk G. The Bottom Line on D