Incremental Net Social Benefit Associated with Using Nuclear-Fueled Power Plants,

摘要

This paper assesses the incremental net social benefit (INSB) resulting from nuclear-fueled,rather than coal-fired,electric power generation. The INSB is defined as the difference between the 'incremental social benefit' (ISB)--caused by the cheaper technology of electric power generation,and the 'incremental social cost' (ISC)--associated with an increased power production,which is induced by cheaper technology. Section 2focuses on the theoretical and empirical problems associated with the assessment of the long-run price elasticity of the demand for electricity,and the theoretical-econometric considerations that lead to the reasonable estimates of price elasticities of demand from those provided by recent empirical studies. Section 3covers the theoretical and empirical difficulties associated with the construction of the long-run social marginal cost curves (LRSMC) of electricity. Sections 4and 5discuss the assessment methodology and provide numerical examples for the calculation of the INSB resulting from nuclear-fueled power generation.