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Deep thought of the day

Posted by David Roberts at 4:48 PM on 20 Mar 2008

Read more about: nuclear power | energy

One can be anti-nuclear subsidy without being "anti-nuclear."

Er ...

... yup, I guess that's true.

These are only my personal opinions.
One can be anti-unicorn

without being anti-animal.

Let the baby light matches in the fuel storage room

Or

Or one could merely ask for some parity.

As is, Nuclear gets somewhere around 20x the federal subsidy of Solar/Geothermal/Hydro/Wind combined.

-David Ahlport

Oops

Make that Nuclear getting closer to 40x the subsidy

-David Ahlport
Whats a subsidy?

Without getting into an endless argument with GreyFlcn (which is very easy to do), one should consider the definition of subsidy.

The easy one is direct support for price of a commodity (the agriculture model). This really doesn't exist in the energy field.

The next level is the production tax credit. This let's income escape taxation to some level. At the whim of congress, renewables get this while a limited number of new nuclear plants would get it for a limited amount of time.

Then there is research and development. Everyone has thier own ox to gore here, but a lot of this involves the Feds trying to pick winners and losers and it's all over the place from pure research to direct support of prototype projects.

Finally, there are implied subsidies. This is includes indemnities, loan guarantees, and the new guy on the block, licensing insurance. These are really forms of underwriting and often result in an actual income at the Federal level, not a cost, since there is an underwriting fee.

I think you need to be consistent. If you don't want production credits, you have to take it away from all technologies. If you don't want load guarantees, you have to take them away from everyone. This is why I continue to favor the carbon tax approach with no subsidies (except real R&D). I trust the market more to pick the winners than the Feds.

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