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Organizational models for the decommissioning of nuclear power plants: Lessons from the United Kingdom and the United States

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  • Wimmers, Alexander
  • von Hirschhausen, Christian

Abstract

With nuclear reactor fleets continuously aging, the decommissioning of closed reactors is gaining increasing attention. In nuclear decommissioning, technical, organizational, and regulatory challenges lead to long project durations and cost escalations. This paper attempts to examine the organizational efficiencies in nuclear decommissioning by applying the framework of the "system good" analysis and assessments based on new institutional economics. It compares the former parent-body-organization model practiced in the United Kingdom with current approaches observed in the United States, highlighting potential gains and policy recommendations for private sector involvement in nuclear decommissioning. Inefficiencies experienced in the United Kingdom include regulatory issues, private actors' opportunism, and information asymmetries. Comparatively, the models observed in the United States show fewer such issues, but regulators should address potential profit-driven shortcuts and funding adequacy.

Suggested Citation

  • Wimmers, Alexander & von Hirschhausen, Christian, 2024. "Organizational models for the decommissioning of nuclear power plants: Lessons from the United Kingdom and the United States," Utilities Policy, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:juipol:v:91:y:2024:i:c:s0957178724001371
    DOI: 10.1016/j.jup.2024.101843
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    More about this item

    Keywords

    Nuclear power; Nuclear decommissioning; Organizational models; System good analysis; Transaction costs;
    All these keywords.

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment

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