The rise and fall of nuclear power in the United States and the limits of regulation

Abstract

This paper documents the rapid growth of nuclear power in the United States and its subsequent decline in the late 1970s. It demonstrates that the increase in numbers of new orders for nuclear plants created pressures for additional licensing complexity to insure safety and provide public intervenors with opportunities to participate in the regulatory process. The resulting protraction of the licensing process combined with increasing political opposition to nuclear power caused construction delays and bureaucratic bottlenecks at a time when soaring interest rates and double-digit inflation have pushed the cost of building new facilities out of the reach of the financially battered utility industry. Together with a downturn in demand for electricity and increasing uncertainty over nuclear power, no reactor orders have been placed since late 1978. It is argued that renewed growth of nuclear power in the United States is unlikely, especially in a regulatory environment which fosters increased costs of electricity to consumers and a simultaneous abrogation of the economies of scale. The consequences of the impending atrophication of the nuclear industry in America and its effects on future energy mixes and long-term national interests must be considered in future nuclear policies and reforms.