Economic Report Finds That Nuclear Power Plants Contribute Nearly $2.5 Billion to New York’s GDP and Avoid 26 Million Tons of Carbon Dioxide Emissions
Need to Prevent Premature Nuclear Plant Shutdowns
New York’s four nuclear energy plants contribute approximately $2.47
billion to the state’s gross domestic product (GDP), in addition to
other economic and societal benefits, according to a new study
conducted by economists at global consulting firm The Brattle Group.
The report estimates New York’s nuclear power plants’ contribution to
the New York economy and to limiting greenhouse gas emissions. Combined,
the state’s six reactors – Entergy’s FitzPatrick in Scriba and Indian
Point 2 & 3 in Buchanan, and Exelon’s Ginna in Ontario and Nine Mile
Point 1 & 2 in Scriba – provide New York households and employers with
over 5,000 megawatts (MW) of emissions-free electricity and nearly 42
million megawatt hours (MWh) of annual electricity generation. The
research concludes that New York’s nuclear industry accounts for about
18,000 in-state full time jobs (direct and secondary) and provides $113
million in net state tax revenues annually. Average annual carbon
dioxide emissions would be about 26 million tons greater absent the
generation from these nuclear plants. This is worth an additional $1.12
billion annually if valued at the U.S. government’s estimate for the
social cost of carbon. The plants are typically one of the largest
employers, tax payers, and charitable contributors in their respective
counties.
“The economic and environmental benefits of nuclear energy are often
undervalued in national and state energy policy discussions,” said Dr.
Mark Berkman, co-author of the report and a principal at The Brattle
Group. “It is even more critical to consider the significant value of
U.S. nuclear plants in a landscape where several factors threaten some
nuclear facilities and could diminish the industry’s contribution to our
electricity supply, the economy, and the environment.”
“This report stresses the need to address the underlying challenges
associated with premature nuclear energy plant shutdowns to ensure that
Americans can continue to reap the indisputable benefits that these
plants bring to the table,” said Nuclear Matters co-chair, former
Senator Judd Gregg (R-NH). “The public and policymakers are seldom
offered such starkly obvious public policy choices as working to ensure
existing nuclear energy plants continue to operate.”
“Reducing carbon emissions is one of our country’s top priorities,”
stated Nuclear Matters co-chair, former Senator Evan Bayh (D-IN). “And
yet, in this carbon-constrained world, existing nuclear energy plants
receive no value for their ability to generate an astounding amount of
carbon-free, reliable energy. The answer to one of our biggest
environmental and economic challenges lies, in part, in nuclear energy.
Without nuclear power, it would be impossible to achieve our carbon
reduction objectives, including the administration’s recently finalized
Clean Power Plan.”
Nuclear energy in New York also helps keep electricity prices lower than
they would otherwise be. In fact, New York consumers would pay over $1.3
billion annually (in 2015 dollars) and over $11.3 billion in the next
ten years (on a net present value basis) absent the state’s nuclear
plants.
Nuclear energy provides almost 20 percent of the United States’
electricity and 33 percent of electricity in New York. However, some
nuclear plants are at risk of premature shut-down due to economic and
policy challenges.
The report estimates New York nuclear plants’ economic value using
Regional Economic Models, Inc. (REMI), a widely-used dynamic
input-output model of the U.S. economy, linked with a simplified Brattle
model of the U.S. electricity sector to better capture the dynamics of
power markets and prices. By linking these models, the authors were able
to measure the economic output, employment, and tax revenue in New York
with and without its nuclear plants, providing the most accurate picture
of their contribution to the economy.
“New
York Nuclear Power Plants’ Contribution to the State Economy” was
prepared for Nuclear Matters by The Brattle Group.
A national report that estimates the value of the entire nuclear
industry to the U.S. economy, “The
Nuclear Industry’s Contribution to the U.S. Economy,” was released
on July 7th. The national report concludes that the United
States’ nuclear energy plants contribute $60 billion annually to
national GDP, among other findings.
About Nuclear Matters
The mission of Nuclear Matters is to inform the public about the clear
benefits that nuclear energy provides to our nation, to raise awareness
of the economic challenges to nuclear energy that threaten those
benefits, and to work with stakeholders to explore possible policy
solutions that properly value nuclear energy as a reliable, affordable
and carbon-free electricity resource that is essential to America’s
energy future.
Supporters of Nuclear Matters include a range of companies and
organizations in the energy industry, including Ameren Missouri,
American Nuclear Insurers, Arizona Public Service Company, AREVA, Black
& Veatch, POWER Engineers, Centrus Energy Corp. Dominion, Duke Energy,
Energy Future Holdings Corporation, Energy Northwest, Entergy
Corporation, Exelon Corporation, FirstEnergy Corp., GE Hitachi Nuclear
Energy, Lightbridge Corporation, Nebraska Public Power District, NextEra
Energy Inc., Omaha Public Power District, Pacific Gas and Electric
Company, South Texas Project Nuclear Operating Company, Southern
Company, Tennessee Valley Authority, and Westinghouse Electric
Corporation.
About The Brattle Group
The Brattle Group analyzes complex economic, finance, and regulatory
questions for corporations, law firms, and governments around the world.
We are distinguished by the clarity of our insights and the credibility
of our experts, which include leading international academics and
industry specialists. For more information, please visit www.brattle.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150914005651/en/
Copyright Business Wire 2015