ABSTRACT
Nuclear energy provides about 20" of US electricity generation, the third-largest source. The United States proposed Yucca Mountain in Nevada as a permanent site, but the plans are on hold. The temporary solution is to store wastes on site. This chapter briefly reviews the economic history of nuclear energy and highlights nuclear energy regulation. Private cost examines the capital costs of building nuclear plants, costs for plant operation and maintenance, and safety costs. Social cost includes negative externalities from spent fuel, including radioactive wastes and fears of nuclear proliferation. There are also subsidies to the industry, such as limited liability in the event of an accident and low-cost loan guarantees that reduce the cost of nuclear energy below its full cost to society. Just as economies were recovering from the depths of the recession, the 2011 nuclear accident at Fukushima reinforced concerns about the safety of nuclear reactors.
