What drives innovation in nuclear reactors technologies? An empirical study based on patent counts.

CERNA WORKING PAPER SERIES 2012-01This paper examines the evolution of innovation in nuclear power reactors between 1974 and 2008 in twelve OECD countries and assesses to what extent nuclear innovation has been driven by economic incentives, political decisions and safety regulation considerations. We use priority patent applications related to Nuclear Power Plants (NPPs) as a proxy for innovating activity. Our results highlight that nuclear innovation is partly driven by the conventional paradigm where both demandpull, measured by NPPs constructions in the innovating country and in the rest of the world, and technology-push, measured by Research and Development (R&D) expenditures specific to NPPs, have a positive and significant impact on innovation. Our results also evidence that the impact of public R&D expenditures and national NPPs construction on innovation is stronger when the quality of innovation, measured by forward patent citations, is taken into account, and have a long run positive impact on innovation through the stock of knowledge available to innovators. In contrast, we show that political decisions following the Three Miles Island and Chernobyl nuclear accidents, measured by NPPs cancellations, have a negative impact on nuclear innovation. Finally, we find that the nuclear safety authority has an ambivalent effect on innovation. On one hand, regulatory inspections have a positive impact on innovation, one the other hand, regulatory decisions to temporarily close a NPP have an adverse impact on innovation

What drives innovation in nuclear reactors technologies? An empirical study based on patent counts.

This paper examines the evolution of innovation in nuclear power reactors between 1974 and 2008 in twelve OECD countries and assesses to what extent nuclear innovation has been driven by economic incentives, political decisions and safety regulation considerations. We use priority patent applications related to Nuclear Power Plants (NPPs) as a proxy for innovating activity. Our results highlight that nuclear innovation is partly driven by the conventional paradigm where both demandpull, measured by NPPs constructions in the innovating country and in the rest of the world, and technology-push, measured by Research and Development (R&D) expenditures specific to NPPs, have a positive and significant impact on innovation. Our results also evidence that the impact of public R&D expenditures and national NPPs construction on innovation is stronger when the quality of innovation, measured by forward patent citations, is taken into account, and have a long run positive impact on innovation through the stock of knowledge available to innovators. In contrast, we show that political decisions following the Three Miles Island and Chernobyl nuclear accidents, measured by NPPs cancellations, have a negative impact on nuclear innovation. Finally, we find that the nuclear safety authority has an ambivalent effect on innovation. On one hand, regulatory inspections have a positive impact on innovation, one the other hand, regulatory decisions to temporarily close a NPP have an adverse impact on innovation.Innovation; nuclear reactors; nuclear safety regulation; nuclear development

Nuclear reactors' construction costs: The role of lead-time, standardization and technological progress

This paper provides the first comparative analysis of nuclear reactor construction costs in France and the United States. Studying the cost of nuclear power has often been a challenge, owing to the lack of reliable data sources and heterogeneity between countries, as well as the long time horizon which requires controlling for input prices and structural changes. We build a simultaneous system of equations for overnight costs and construction time (lead-time) to control for endogeneity, using expected demand variation as an instrument. We argue that benefits from nuclear reactor program standardization can arise through short term coordination gains, when the diversity of nuclear reactors' technologies under construction is low, or through long term benefits from learning spillovers from past reactor construction experience, if those spillovers are limited to similar reactors. We find that overnight construction costs benefit directly from learning spillovers but that these spillovers are only significant for nuclear models built by the same Architect Engineer (A-E). In addition, we show that the standardization of nuclear reactors under construction has an indirect and positive effect on construction costs through a reduction in lead-time, the latter being one of the main drivers of construction costs. Conversely, we also explore the possibility of learning by searching and find that, contrary to other energy technologies, innovation leads to construction costs increases

L'économie de l'énergie nucléaire : quatre essais sur le rôle de l'innovation et de l'organisation industrielle

This thesis studies the role of innovation and industrial structures in the nuclear power sector. The analysis of innovation is based on the use of patent data as a measure of innovation effort. On the one hand, we study the determinants of innovation and, on the other hand, its impact on operating and safety performance of existing nuclear reactors and on construction costs. We show that nuclear safety regulation can induce innovation and improve safety performance, but at the same time contributes to increases in construction costs. The analysis of the role of industrial structures allows us to study the impact of learning by doing opportunities both for construction and operation of reactors, as well as the effect of electricity market liberalization on operating performance. In particular, we show that the divestiture of electricity production and distribution activities induces a substantial improvement in the availability of nuclear reactors.Cette thèse étudie le rôle de l'innovation et des structures industrielles dans l'industrie nucléaire. L'analyse de l'innovation est basée sur l'utilisation de données de brevets comme mesure de l'effort d'innovation. Nous étudions d'une part les déterminants de l'innovation et, d'autre part, son impact sur la performance économique et de sureté des réacteurs nucléaires existants et sur les coûts de construction. Nous montrons que la régulation de sureté nucléaire peut promouvoir l'innovation et permet d'améliorer la performance de sureté, mais dans le même temps contribue à l'augmentation des coûts de construction. L'analyse du rôle des structures industrielles permet d'étudier l'effet des opportunités d'effets d'apprentissage, à la fois pour la construction et l'exploitation des réacteurs, ainsi que l'effet de la libéralisation des marchés de l'électricité sur la performance d'exploitation. En particulier, nous montrons que la séparation entre les activités de production et de distribution d'électricité induit une importante amélioration de la disponibilité des réacteurs nucléaires

The economics of nuclear power : four essays on the role of innovation and industrial organization

Cette thèse étudie le rôle de l'innovation et des structures industrielles dans l'industrie nucléaire. L'analyse de l'innovation est basée sur l'utilisation de données de brevets comme mesure de l'effort d'innovation. Nous étudions d'une part les déterminants de l'innovation et, d'autre part, son impact sur la performance économique et de sureté des réacteurs nucléaires existants et sur les coûts de construction. Nous montrons que la régulation de sureté nucléaire peut promouvoir l'innovation et permet d'améliorer la performance de sureté, mais dans le même temps contribue à l'augmentation des coûts de construction. L'analyse du rôle des structures industrielles permet d'étudier l'effet des opportunités d'effets d'apprentissage, à la fois pour la construction et l'exploitation des réacteurs, ainsi que l'effet de la libéralisation des marchés de l'électricité sur la performance d'exploitation. En particulier, nous montrons que la séparation entre les activités de production et de distribution d'électricité induit une importante amélioration de la disponibilité des réacteurs nucléaires.This thesis studies the role of innovation and industrial structures in the nuclear power sector. The analysis of innovation is based on the use of patent data as a measure of innovation effort. On the one hand, we study the determinants of innovation and, on the other hand, its impact on operating and safety performance of existing nuclear reactors and on construction costs. We show that nuclear safety regulation can induce innovation and improve safety performance, but at the same time contributes to increases in construction costs. The analysis of the role of industrial structures allows us to study the impact of learning by doing opportunities both for construction and operation of reactors, as well as the effect of electricity market liberalization on operating performance. In particular, we show that the divestiture of electricity production and distribution activities induces a substantial improvement in the availability of nuclear reactors

Harmonising Nuclear Safety in the EU: Which Priority?

International audienc

Nuclear reactors' construction costs: The role of lead-time, standardization and technological progress

International audienceThis paper provides an econometric analysis of nuclear reactor construction costs in France and the United States based on overnight costs data. We build a simultaneous system of equations for overnight costs and construction time (lead-time) to control for endogeneity, using change in expected electricity demand as instrument We argue that the construction of nuclear reactors can benefit from standardization gains through two channels. First, short term coordination benefits can arise when the diversity of nuclear reactors' designs under construction is low. Second, long term benefits can occur due to learning spillovers from past constructions of similar reactors. We find that construction costs benefit directly from learning spillovers but that these spillovers are only significant for nuclear models built by the same Architect-Engineer. In addition, we show that the standardization of nuclear reactors under construction has an indirect and positive effect on construction costs through a reduction in lead-time, the latter being one of the main drivers of construction costs. Conversely, we also explore the possibility of learning by searching and find that, contrary to other energy technologies, innovation leads to construction costs increase

Compétitivité des systèmes de production d’électricité au sein des réseaux : application au nucléaire et aux énergies renouvelables variables

L’analyse des politiques climatiques compatibles avec les objectifs de réduction des émissions de gaz à effet de serre fait partie des travaux de l’Agence internationale de l’énergie (AIE) et de l’Agence pour l’énergie nucléaire (AEN). Dans le secteur électrique, les ressources hydrauliques et le choix de l’énergie nucléaire permettent dès à présent à certains pays de produire une électricité décarbonée et compétitive, ce qui est le cas en France. Les énergies renouvelables variables (solaire, éolien) auront également un rôle important à jouer dans la quasi-totalité des scénarios de long terme. Le niveau de déploiement de ces différentes technologies bas carbone devra cependant ne pas se limiter à une comparaison des coûts de production à l’échelle de la centrale individuelle mais tenir compte de leurs effets sur les systèmes électriques. Les travaux de l’AIE et de l’AEN offrent des résultats utiles pour comprendre et quantifier ces effets et en tirer des recommandations de politique énergétique