Week 9
- Source
- Problem
- The article highlights the environmental and economic challenges of balancing the benefits of low-carbon nuclear power with the waste that creates carbon dioxide, high costs, and public safety concerns Nuclear power helps the atmosphere status targets, but long-term waste management and economic benefits remain major barriers to sustainable energy transitions under climate change pressures
- Summary
- The CBC article discusses the growing role of nuclear power in addressing climate change and related environmental and financial challenges. Nuclear electricity is considered an increasingly important low-carbon response. in achieving global climate goals The stove produces energy without emitting greenhouse gases. This is the right choice to reduce our dependence on fossil fuels. Meanwhile Nuclear electricity faces some rather stringent situations, such as excessively high prices. long construction period and problems related to the management and protection of radioactive waste. Countries around the world are reassessing their nuclear power capacity. Some have expanded or restarted nuclear packaging. While other countries It remains cautious due to public consensus and past nuclear failures such as Chernobyl and Fukushima. The high initial capital and long-term financial responsibility of dealing with radioactive waste and decommissioning the facility pose financial constraints. Proponents argue that nuclear power complements renewable energy sources such as wind and solar. By providing consistent electricity This is important for the balance of the electrical grid. Critics argue that investing in nuclear power should shift resources away from increasing renewable technologies. which is cheaper and can be used faster This article emphasizes that debates about nuclear power are not always about technology. but also public opinion. Regulatory framework and economic priorities as well While various countries Compete to reduce carbon emissions The role of nuclear power remains a controversial and potentially important issue. which is a global energy mystery Addressing safety, tax and waste management issues is essential to unlocking the full potential for sustainable change.
Prof: A number of word use errors. A careful proof read would have been good.
- Economic concepts
- Externalities: An externality is a side effect of an activity that affects other people who are not directly involved in the activity. These effects can be either positive (benefits) or negative (costs). Positive externality occurs when an action benefits someone else who isn't part of the activity. For example, if you plant a tree in your yard, it not only provides you with shade, but it also improves the air quality and beautifies the neighborhood for everyone around you. The benefit to your neighbors is a positive externality. Negative externality happens when an action harms others. For example, if a factory pollutes a river, the pollution harms people who live downstream, even though they aren't involved in the factory’s operations. This harmful effect is a negative externality. Externalities are important because the costs or benefits are not reflected in the price of the product or service. When this happens, the market fails to make the best decisions for society as a whole. In the case of pollution (a negative externality), the cost of the harm is not included in the price of the product, leading to overproduction of polluting goods.
- Cost-Benefit Analysis: A cost-benefit analysis is a method used to compare the costs of an action to its benefits. The goal is to decide whether the benefits of an activity are worth more than the costs. In a cost-benefit analysis, you list all the costs associated with a project or decision, and then compare them to the benefits that will come from it. For example, if a city is considering building a new park, the costs might include construction expenses, maintenance costs, and land use. The benefits could include providing a space for exercise, improving air quality, and making the neighbourhood more attractive, which could increase property values. If the benefits outweigh the costs, then the project is considered a good investment. If the costs are higher, then it might be better to look for other solutions. In economics, externalities often appear in cost-benefit analysis. For instance, if a company is building a factory, they should consider not only the profit they will make (a benefit) but also the pollution they will cause (a negative externality). The analysis helps policymakers make decisions that balance economic growth with the well-being of society.
- Application of concepts
- Externalities: The article explains that nuclear energy produces zero carbon emissions, benefiting the people around it if it were a coal or gas plant otherwise. This would benefit low income families who often live near industrial areas for work. Instead of having a coal plant to power towns, industrial facilities, and infrastructure a clean nuclear plant will benefit those surrounding them by having zero emissions compared to gas or coal. However nuclear powerplants do not come without risks. There is a lot of public controversy on the use of nuclear powerplants. The possibility of accidents (like Chernobyl or Fukushima), represent a negative externality where people can suffer from radiation which causes: long term environmental damage, displacement, and health risks, which communities that are living near the nuclear powerplant would have to deal with.
- Cost-Benefit Analysis: The cost of nuclear energy would be cost to construct a reactor. The article mentions that it is one of the biggest hurdles. Ontario's four-unit Darlington nuclear station costed $14.5 billion to build. This would likely come from tax payer dollars so the benefit of the power that the nuclear plant would supply would have to outweigh the $14.5 billion upfront cost. There are also waste management costs that will need to be accounted for. Currently Canada and the US do not have any long term solution for nuclear waste stations interestingly enough, the plant has operated efficiently for decades and is suppling 20 percent of the Ontario's electricity. This energy solution also comes with the benefit of clean air for the surrounding area. Policy makers will have to weigh the costs of building and storage, compare it to the benefits of electricity cost and the clean air that the plant would maintain.
- Prof: An important part of cost benefit analysis for projects like building a nuclear power plant is discounting. A nuclear power plant is in service for a long time, multiple decades. The up front cost is very high, but once operational, the cost per kW generated is very low. The costs of managing the waste occur for a very long time, but those costs are also far in the future. Thus, a low discount rate would likely favor nuclear power, while a high discount rate would make nuclear power projects fail on dynamic efficiency. What is the appropriate discount rate? If climate change is the issue, then it would seem that the social discount rate is appropriate, as that reflects societies tradeoff between present and future impacts. However, if the opportunity cost is the return on other private investment, then a higher discount rate is appropriate. Private firms will of course consider a discount rate that reflects their alternative investment opportunities. Nuclear often fails here, which is why governments tend to underwrite or otherwise subsidize nuclear power.
- Conclusion
- This article highlights nuclear power's role in combating climate change by providing low-carbon energy, complementing renewable resources like wind and solar. However, high costs, long construction times, radioactive waste management, and safety concerns remain major challenges for nuclear energy. Economically, nuclear energy involves externalities, as its benefits like environmental impact and costs like waste and risk impact society. While supporters recognize nuclear's role in stabilizing the energy grid, critics argue that investments should focus on faster and cheaper renewable technologies.