The Economics of Coal Versus Nuclear Power Generation In Alberta when Social Costs are Included

Abstract

This study analyzes the economics of nuclear and coal-fired electricity generation to satisfy future base load demand in the province of Alberta when social costs are included. This study uses estimates of the traditional costs as well as estimates of the social costs to determine the sensitivity of the outcome of the economic analysis to these costs. For the base case study, using traditional cost factors from an earlier economic study of the two alternatives, nuclear is shown not to be economically justifiable in the foreseeable future. Including the expected social costs does not change this result. With a small change in the anticipated escalation rate for the price of nuclear fuel, however, the outcome is found to be sensitive to the inclusion of social costs.