- MARK J. PERRY
WASHINGTON, D.C. — What would help our economy create hundreds of thousands of well-paying jobs, bring millions of dollars to federal and state treasuries, provide clean air, reduce our trade deficit and enable America to be less dependent on foreign oil? Building more nuclear plants, that’s what!
Here is why it will happen: For starters, producing nuclear-generated electricity is cheaper than any other major source of power. Granted, the cost of building new nuclear plants is high, but comparatively low nuclear fuel costs yield a significant savings over a plant's lifetime.
According to the most recent data, the average cost of producing nuclear energy was 1.87 cents per kilowatt-hour, compared to 2.75 cents for coal, 8.09 cents for natural gas and 17.26 cents for petroleum.
Savings from using nuclear energy are likely to increase significantly as the cost of burning fossil fuels, especially coal, rises due to government controls on carbon dioxide emissions.
And that's especially important in the United States, since we obtain about 19 percent of our electricity from nuclear energy but more than 70 percent from fossil fuels. Reversing that percentage should be our goal.
Solar and wind energy have low production costs, but back-up power from high-priced natural gas turbines is required to supply electricity when the weather isn't cooperating.
In contrast, U.S. nuclear plants provide electricity nearly 90 percent of the time, they are therefore of great economic value to the country because they are reliable sources of base-load electricity for households, business and industry. And nuclear energy also has peripheral benefits, one of which is especially important now.
The construction of new nuclear plants produces jobs. Electricity companies around the country are gearing up to build nearly 30 new nuclear plants, providing business opportunities for hundreds of nuclear suppliers that manufacture components and equipment for reactors.
A number of suppliers have built new facilities or increased the capacity of existing plants. So far this activity, coupled with planning for new nuclear reactors, has created more than 15,000 jobs. But that's only a start.
Job creation should take off once construction of the first new plants begins. One study estimates that 350,000 people will be needed to build and operate 45 new nuclear plants. But considering there hasn't been a U.S. nuclear plant built in decades, experts say there is a shortage of nuclear-qualified pipefitters, welders and ironworkers.
The problem is so serious that a Maryland nuclear company has formed a partnership with organized labor to train a new generation of workers to meet its need for skilled manpower.
There have been other developments. Enrollments in nuclear engineering programs at major universities have increased substantially. And hundreds of engineers and other personnel have been hired by the Nuclear Regulatory Commission to handle applications for permits to construct and operate new reactors.
The economic and environmental rewards from nuclear plant construction are sizable. Based on past experience, it's estimated that each new plant will produce $430 million annually in spending on goods, services and labor. And each new plant will generate $20 million a year in state and local tax revenue and $75 million in federal tax payments. Americans also will benefit environmentally since carbon-free nuclear plants don't create any air pollution.
Finally, nuclear energy plays a key role in reducing dependence on foreign oil. At least 30 additional plants will need to be built in the U.S. by 2030 in order to maintain nuclear's current 20 percent share of electricity production.
For that to happen, construction of the first new plants will need to begin in 2012 or 2013. These new plants will help meet the need for additional electricity to power our increasingly digitalized economy, enhance our energy security, provide cleaner air and create jobs. That makes good economic sense. Let's get on with it.
Mark Perry (Mark.Perry@aei.org) is a professor of economics at the University of Michigan in Flint and an adjunct scholar at the American Enterprise Institute (aei.org) in Washington. Readers may write him UM Flint, 303 E. Kearney St., Flint, MI 48502.
