In a survey published by Scioto Analysis this morning, a majority of respondents believed nuclear subsidies paid for by ratepayers represented a transfer from a large number of households to a small number of investors and workers, but more economists were uncertain or had no opinion about overall economic effects.
While economists surveyed tended to agree that this payment system was a transfer of income, some said that it could be justified depending on whether the payments covered the fixed cost of operation of a large utility. Those who disagreed or were uncertain emphasized both fixed cost concerns and nuclear power’s potential to reduce greenhouse gas emissions.
Responses to the question about overall economic impact seemed to emphasize environmental impact, with some economists saying that environmental benefits will outweigh economic costs of the subsidy, some saying they would not, and others saying the result was uncertain. The economic efficiency of the plants was also emphasized by respondents.
The Ohio Economic Experts Panel is a panel of over 40 Ohio Economists from over 30 Ohio higher educational institutions conducted by Scioto Analysis. The goal of the Ohio Economic Experts Panel is to promote better policy outcomes by providing policymakers, policy influencers, and the public with the informed opinions of Ohio’s leading economists.
If you would like to suggest a question for a future Ohio Economic Experts Panel, email your ideas to panel@sciotoanalysis.com.