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Diverting indirect subsidies from the nuclear industry to the photovoltaic industry: Energy and financial returns

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  • Zelenika-Zovko, I.
  • Pearce, J.M.

Abstract

Nuclear power and solar photovoltaic energy conversion often compete for policy support that governs economic viability. This paper compares current subsidization of the nuclear industry with providing equivalent support to manufacturing photovoltaic modules. Current U.S. indirect nuclear insurance subsidies are reviewed and the power, energy and financial outcomes of this indirect subsidy are compared to equivalent amounts for indirect subsidies (loan guarantees) for photovoltaic manufacturing using a model that holds economic values constant for clarity. The preliminary analysis indicates that if only this one relatively ignored indirect subsidy for nuclear power was diverted to photovoltaic manufacturing, it would result in more installed power and more energy produced by mid-century. By 2110 cumulative electricity output of solar would provide an additional 48,600Â TWh over nuclear worth $5.3 trillion. The results clearly show that not only does the indirect insurance liability subsidy play a significant factor for nuclear industry, but also how the transfer of such an indirect subsidy from the nuclear to photovoltaic industry would result in more energy over the life cycle of the technologies.

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  • Zelenika-Zovko, I. & Pearce, J.M., 2011. "Diverting indirect subsidies from the nuclear industry to the photovoltaic industry: Energy and financial returns," Energy Policy, Elsevier, vol. 39(5), pages 2626-2632, May.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:5:p:2626-2632
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    Cited by:

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    3. Gonzalez, Asa O. & Karali, Berna & Wetzstein, Michael E., 2012. "A public policy aid for bioenergy investment: Case study of failed plants," Energy Policy, Elsevier, vol. 51(C), pages 465-473.
    4. Joshua M. Pearce, 2012. "Limitations of Nuclear Power as a Sustainable Energy Source," Sustainability, MDPI, vol. 4(6), pages 1-15, June.
    5. Hartmann, Patrick & Apaolaza, Vanessa & D'Souza, Clare & Echebarria, Carmen & Barrutia, Jose M., 2013. "Nuclear power threats, public opposition and green electricity adoption: Effects of threat belief appraisal and fear arousal," Energy Policy, Elsevier, vol. 62(C), pages 1366-1376.
    6. Alafita, T. & Pearce, J.M., 2014. "Securitization of residential solar photovoltaic assets: Costs, risks and uncertainty," Energy Policy, Elsevier, vol. 67(C), pages 488-498.
    7. Peter M. Schwarz & Joseph A. Cochran, 2013. "Renaissance Or Requiem: Is Nuclear Energy Cost Effective In A Post-Fukushima World?," Contemporary Economic Policy, Western Economic Association International, vol. 31(4), pages 691-707, October.
    8. John J. Laureto & Joshua M. Pearce, 2016. "Nuclear Insurance Subsidies Cost from Post-Fukushima Accounting Based on Media Sources," Sustainability, MDPI, vol. 8(12), pages 1-16, December.
    9. Child, Michael & Koskinen, Otto & Linnanen, Lassi & Breyer, Christian, 2018. "Sustainability guardrails for energy scenarios of the global energy transition," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 321-334.
    10. Suna, Demet & Resch, Gustav, 2016. "Is nuclear economical in comparison to renewables?," Energy Policy, Elsevier, vol. 98(C), pages 199-209.
    11. de Melo, Conrado Augustus & Jannuzzi, Gilberto de Martino & Bajay, Sergio Valdir, 2016. "Nonconventional renewable energy governance in Brazil: Lessons to learn from the German experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 61(C), pages 222-234.
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    14. Chelsea Schelly & Don Lee & Elise Matz & Joshua M. Pearce, 2021. "Applying a Relationally and Socially Embedded Decision Framework to Solar Photovoltaic Adoption: A Conceptual Exploration," Sustainability, MDPI, vol. 13(2), pages 1-18, January.

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