Learning Effects and the Commercialization of New Energy Technologies: The Case of Nuclear Power (Classic Reprint) - Softcover

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Excerpt from Learning Effects and the Commercialization of New Energy Technologies: The Case of Nuclear Power

The policy debate has centered on the wisdom of government subsidy for the construction of large-scale commercial plants. The goal of subsidizing the plants is not to produce new technological information since the technology is already proven. Rather, the goal is to overcome obstacles to the introduction of the technology by the private sector. These obstacles are claimed to be of an informational nature. It is argued there are significant learning externalities. First, observing others' experience leads to lower construction-costs. Since the benefits can be realized by another's investment, there is too little incentive to invest.

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