Nuclear power

: a risky endeavor or an opportunity for the future?

Abstract

In an age where a worldwide climate strategy is needed to mitigate the effects of climate change and global warming, the use of nuclear power as a source of electricity generation is currently a topic of discussion, amidst debates over energy decarbonization and security. This dissertation examines, theoretically and empirically, the effects of the closures of nuclear power plants on electricity prices and mortality. Using state-level monthly data on temperature, mortality, demographics, and the electricity market, I perform an event study that quantifies the impact of the closure of five nuclear power plants that were nearby and stopped operating at roughly the same time. Following the shutdown of nuclear power plants, it is anticipated that energy prices will rise, making access to temperature-regulating devices less affordable and exposing more people to extreme temperatures, which is anticipated to increase mortality rates. Results show that in almost all regions, residential electricity expenditure and prices decreased and exogenously increased after the nuclear plants’ closure. As predicted, electricity demand is inelastic, particularly in the summer months, and increased following the nuclear plant shutdowns. Importantly, extreme temperatures positively affect mortality, and I estimate that the coinciding exposure to them and the lower level of electricity expenditure have caused up to additional 2776 deaths per year. This evidence has important implications for the assessment of the effects of the USA’s decision to partially move away from nuclear power and the design of accompanying measures.

Date of Award	25 Jan 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Joana Santos Silva (Supervisor)