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Does the use of nuclear power lead to lower electricity prices? An analysis of the debate in Germany with an international perspective

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  • Nestle, Uwe
Abstract
There is an ongoing discussion if it is reasonable to start using nuclear energy, to extend its use, or what effects its phase out could have. In July 2011, four months after the nuclear accidents in Japan, Germany decided to return to the policy of phasing out nuclear energy step by step until 2022. This policy was already decided upon in 2000. With this, a decision made some nine months earlier was taken back. In fall 2010, the government and Parliament had approved the extension of the operating lives of its nuclear plants by at least 14 years. One reason was the expected effect on the electricity price, which was said to be lower with extended nuclear plant life spans.

Suggested Citation

  • Nestle, Uwe, 2012. "Does the use of nuclear power lead to lower electricity prices? An analysis of the debate in Germany with an international perspective," Energy Policy, Elsevier, vol. 41(C), pages 152-160.
    • Handle: RePEc:eee:enepol:v:41:y:2012:i:c:p:152-160
    DOI: 10.1016/j.enpol.2011.09.043
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    1. Sir Nicholas Stern, 2006. "What is the Economics of Climate Change?," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 7(2), pages 1-10, April.
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    1. Römer, Benedikt & Reichhart, Philipp & Kranz, Johann & Picot, Arnold, 2012. "The role of smart metering and decentralized electricity storage for smart grids: The importance of positive externalities," Energy Policy, Elsevier, vol. 50(C), pages 486-495.
    2. Grossi, Luigi & Heim, Sven & Waterson, Michael, 2014. "A vision of the European energy future? The impact of the German response to the Fukushima earthquake," The Warwick Economics Research Paper Series (TWERPS) 1047, University of Warwick, Department of Economics.
    3. Martin Bohl & Philipp Kaufmann & Patrick Stephan, 2012. "From Hero to Zero: Evidence of Performance Reversal and Speculative Bubbles in German Renewable Energy Stocks," CQE Working Papers 2412, Center for Quantitative Economics (CQE), University of Muenster.
    4. Rehner, Robert & McCauley, Darren, 2016. "Security, justice and the energy crossroads: Assessing the implications of the nuclear phase-out in Germany," Energy Policy, Elsevier, vol. 88(C), pages 289-298.
    5. Ozan Korkmaz & Bihrat Önöz, 2022. "Modelling the Potential Impacts of Nuclear Energy and Renewables in the Turkish Energy System," Energies, MDPI, vol. 15(4), pages 1-25, February.
    6. Stringer, Thomas & Joanis, Marcelin & Abdoli, Shiva, 2024. "Power generation mix and electricity price," Renewable Energy, Elsevier, vol. 221(C).
    7. Rübbelke, Dirk & Vögele, Stefan, 2013. "Effects of carbon dioxide capture and storage in Germany on European electricity exchange and welfare," Energy Policy, Elsevier, vol. 59(C), pages 582-588.
    8. Nomsa Phindile Nkosi & Johane Dikgang, 2021. "South African Attitudes About Nuclear Power: The Case of the Nuclear Energy Expansion," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 138-146.
    9. Bohl, Martin T. & Kaufmann, Philipp & Stephan, Patrick M., 2013. "From hero to zero: Evidence of performance reversal and speculative bubbles in German renewable energy stocks," Energy Economics, Elsevier, vol. 37(C), pages 40-51.
    10. de Frutos Cachorro, J. & Willeghems, G. & Buysse, J., 2019. "Strategic investment decisions under the nuclear power debate in Belgium," Resource and Energy Economics, Elsevier, vol. 57(C), pages 156-184.
    11. de Frutos Cachorro, Julia & Willeghems, Gwen & Buysse, Jeroen, 2020. "Exploring investment potential in a context of nuclear phase-out uncertainty: Perfect vs. imperfect electricity markets," Energy Policy, Elsevier, vol. 144(C).
    12. Bruninx, Kenneth & Madzharov, Darin & Delarue, Erik & D'haeseleer, William, 2013. "Impact of the German nuclear phase-out on Europe's electricity generation—A comprehensive study," Energy Policy, Elsevier, vol. 60(C), pages 251-261.
    13. Friedrich Kunz and Hannes Weigt, 2014. "Germanys Nuclear Phase Out - A Survey of the Impact since 2011 and Outlook to 2023," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
    14. Andrew B. Moynihan & Geertje Schuitema, 2020. "Values Influence Public Acceptability of Geoengineering Technologies Via Self-Identities," Sustainability, MDPI, vol. 12(11), pages 1-33, June.
    15. Grossi, Luigi & Heim, Sven & Waterson, Michael, 2017. "The impact of the German response to the Fukushima earthquake," Energy Economics, Elsevier, vol. 66(C), pages 450-465.
    16. Brigitte Knopf & Michael Pahle & Hendrik Kondziella & Fabian Joas & Ottmar Edenhofer & Thomas Bruckner, 2014. "Germany's Nuclear Phase-out: Sensitivities and Impacts on Electricity Prices and CO2 Emissions," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    17. Lucas Bretschger & Lin Zhang & Roger Ramer, 2012. "Economic effects of a nuclear-phase out policy: A CGE analysis," CER-ETH Economics working paper series 12/167, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.

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