Nuclear Power and Global Warming: A First Cost-Benefit Calculation
1994
Hope, Chris
This paper investigates the costs and benefits of a modest nuclear power programme in the European Union to combat the threat of global warming. The nuclear programme is found to bring a double benefit. The first and more obvious benefit is that the economic impacts of global warming are reduced. The second benefit is counter-intuitive; most people would expect it to be a cost. It comes from the stimulus to the economy from the construction of the nuclear plant, which, with the recycling of carbon tax revenues, offsets its construction and operating costs, and may even cause consumers' expenditure to rise. Calculations in this paper show that over the period to 2100 the mean net present value of the first benefit is 6 billion European Currency Units (ECU; 1 ECU is about $1), while the second benefit has a mean net present value of 158 billion ECU. However both benefits, particularly the second, are still very uncertain, to the extent that even their sign is not yet definitely established.
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