Nuclear energy is undisputedly a very paramount source of energy in first world countries, Japan included. It involves sophisticated nuclear fission that yields energy. It has been argued that it is not a good source of energy by some internationally known agencies like Forbes. Nuclear power generation in Japan has encountered changes following the tragedy in Fukushima in 2011 for reactor plants being erected so close to the ocean where they are vulnerable to tsunamis. The impacts of the tragedy were felt in the economic as well as political sector. The welfare economics of the state went down because of the fatalities and destruction experienced. It was also pointed that information was not well made known to the nuclear operation centers as well as evacuations.
Costs
Numerous costs are associated with nuclear energy in both its inception and also its operational costs. It is argued that the economic viability of nuclear operations is in question in this age and time. Raw material costs tend to have a very competitive demand. Lack of native access spots of the raw materials can render nuclear operations very unreliable. The price of Uranium has gradually increased over the past few years (from $44/kg in 2005 to $130/kg in 2016() which in turn has increased the price of the electricity produced.
Benefits.
In comparison to other sources of energy, nuclear energy has the least operations costs. Reliability of nuclear energy unlike all solar that when the sun is unavailable it cannot be expected to provide energy, but rather can operate at all adverse weather conditions. The costs of uranium compared to the lifespan of its usage is relatively good, hence can be deemed as a fuel of low cost. Nuclear energy has huge reservoirs therefore it has a continuous supply. Benefits of its cheap transportation as compared to other sources like coal because it is needed in very small quantities. Job creation is an impact of nuclear energy.
What can be done?
Japan should aim at improving efficiency in the operations of the nuclear plant reactor. Firstly, it should make sure that it avoids inadequacy of fuel used in the plants, proper equipment in the form of machines and expertise. From an economic aspect, labor and capital are the major constituents of the production function. Therefore, with constant marginal returns from either capital or labor it ensures that production of energy is increasing with increase in efficiency.
The expected generation capacity of any nuclear plant should be reduced following the Fukushima tragedy. This will aid in the control, in case things go wrong in production because safety measures can easily be undertaken or even shut down. For all reactors in operation, scrutiny should be done for knowing the age of these reactors so as to keep them current with advancements in technology. Competitiveness of reactors should be looked at. If a reactor is not operating to its potential with exercising extreme safety measures and efficiency, it should be closed down as was done in the USA. Government subsidies should be increased so as to increase operations that are majorly aimed at heightening safety measures for both the individuals working in these areas and the environment. Gradual expansion of these reactors should be done to make sure that there are no resource shortages so that prices do not hike excessively.
References
Cooper, M. (2013). Nuclear Aging: Not so graceful. Bulletin of the Atomic Scientists.
Ferguson, C. D. (2007). Nuclear Energy: Balancing Benefits and Risks. Council on Foreign Relations.
Lovering J, Y. A. (2016). Historical construction costs of global nuclear power reactors. Energy Policy, 371-382.
Lowe, I. (2011). No nukes now, or never. Melbourne: The Age.
McMahon, J. (2013). "New Build Nuclear is Dead: Morning star. Forbes.
Riley, C. (2013). Bank of Japan takes fight to deflation. CNN.
Sovacool, B. K. (2011). Second Thoughts About Nuclear Power. Singapore: National University of Singapore.
