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Uranium and Nuclear Power: The Role of Exploration Information in Framing Public Policy

Author

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  • Charles F. Mason

    (H.A. True Chair in Petroleum and Natural Gas Economics, Department of Economics & Finance, University of Wyoming)

Abstract
As addressing climate change becomes a high priority it seems likely that there will be a surge in interest in deploying nuclear power. Other fuel bases are too dirty (coal), too expensive (oil, natural gas) or too speculative (solar, wind) to completely supply the energy needs of the global economy. To the extent that the global society does in fact choose to expand nuclear power there will be a need for additional production. That increase in demand for nuclear power will inevitably lead to an increase in demand for uranium. While some of the increased demand for uranium will be satisfied by expanding production from existing deposits, there will undoubtedly be pressure to find and develop new deposits, perhaps quite rapidly. Looking forward, it is important that policies be put in place that encourage an optimal allocation of future resources towards exploration. In particular, I argue there is a valid concern that privately optimal levels of industrial activity will fail to fully capture all potential social gains; these sub-optimal exploration levels are linked to a departure between the private and social values of exploration information.

Suggested Citation

  • Charles F. Mason, 2013. "Uranium and Nuclear Power: The Role of Exploration Information in Framing Public Policy," Working Papers 2013.19, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2013.19
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    References listed on IDEAS

    as
    1. Mason, Charles F., 1989. "Exploration information and AEC regulation of the domestic uranium industry," Journal of Economic Dynamics and Control, Elsevier, vol. 13(3), pages 421-448, July.
    2. Milgrom, Paul & Weber, Robert J., 1982. "The value of information in a sealed-bid auction," Journal of Mathematical Economics, Elsevier, vol. 10(1), pages 105-114, June.
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    5. Mason, Charles F., 1985. "Learning from exploration information : The case of uranium," Resources and Energy, Elsevier, vol. 7(3), pages 243-257, September.
    6. Victor P. Goldberg, 1977. "Competitive Bidding and the Production of Precontract Information," Bell Journal of Economics, The RAND Corporation, vol. 8(1), pages 250-261, Spring.
    7. Paul L. Joskow & John E. Parsons, 2012. "The Future of Nuclear Power After Fukushima," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
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    12. Isaac, R. Mark, 1987. "The value of information in resource exploration: The interaction of strategic plays and institutional rules," Journal of Environmental Economics and Management, Elsevier, vol. 14(4), pages 313-322, December.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Zirui Wang & Wanli Xing, 2022. "Study on the Characteristics and Evolution Trends of Global Uranium Resource Trade from the Perspective of a Complex Network," Sustainability, MDPI, vol. 14(22), pages 1-23, November.
    2. Emilio Castillo, 2020. "Mineral Exploration and the Discovery of New Deposits," Working Papers 2020-06, Colorado School of Mines, Division of Economics and Business.
    3. Castillo, Emilio & Roa, Cintia, 2021. "Defining geological maturity: The effect of discoveries on early-stage mineral exploration," Resources Policy, Elsevier, vol. 74(C).

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    More about this item

    Keywords

    Uranium; Nuclear Power; Exploration;
    All these keywords.

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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