CIAO DATE: 10/2008
January 2008
Belfer Center for Science and International Affairs, Harvard University
This paper discusses the evolution of nuclear energy markets and key drivers of the growing "nuclear renaissance." We focus on uranium, the largest part of the nuclear fuel markets, and analyze market demand, supply, and prices since the 1970s. We review the forces impacting this market—historically and prospectively—and note proliferation concerns surrounding nuclear energy: i.e. the same facilities that enrich uranium for electricity generation can also enrich it further for nuclear weapons.
We discuss proposals currently being offered by the international community to counter this proliferation challenge and propose a complementary solution: the development of a market-based approach that relies on what has become the largest industry in the world, insurance and finance. We analyze the feasibility of such an “Insure to Assure” approach, developed in conjunction with the public sector, and its implications for international security and nuclear energy markets (including the possible commoditization of enriched uranium).
Resource link: The Economics of Nuclear Energy Markets and the Future of International Security [PDF] - 360K