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What’s the Price for Nuclear Technology?

By Nathaniel Manning
October 28, 2008
File under: Alternative Energy

Nuclear Power

“Energy Independence” is a statement often dissipated recently in the Presidential race. Interestingly, both sides seem to claim that they are the champions who can achieve this magnificent feat. The importance of energy independence in this globalized world was struck home by Barack Obama in the third debate at Hofstra University: “If we invest in a serious energy policy, we will save the amount of money we’re borrowing from China to send to Saudi Arabia.” While both campaigns claim to uphold the banner of energy independence, they are each proselytizing very different answers for achieving this goal.

There are numerous differences between Obama’s and McCain’s energy plans. We have increasingly heard the candidates altercate over issues such as offshore drilling and tax cuts for big oil.  However, a fundamental difference between each candidates’ plan, largely overshadowed by the emotionally-charged aforementioned issues, is nuclear energy. The McCain campaign intends to put in motion an investment of $300 billion to build 45 new nuclear plants in the USA by 2030. In last Thursday’s debate McCain retorted; “Senator Obama will tell you, as the extreme environmentalists do, it has to be safe. Look, we’ve sailed Navy ships around the world for 60 years with nuclear power plants on them.” And frankly, he is right. France has been powering their nation on nuclear energy for years, and America has the technology to do the same. But… safety and waste storage are not the only reasons to avoid nuclear energy, neither is the fact that each plant costs approximately $10 billion due to the price increase in steel and other commodities. The truth is that investing in nuclear power is a poor business venture because we cannot sell it to the rest of the world; the clean technology industry is America’s ticket to not only energy independence but economic independence as well.

Obama, on the other hand, plans to invest $150 billion of the federal budget in renewable energy sources over the next ten years. Its not that he is avidly against nuclear energy but instead recognizes that the government energy investments should be going foremost to renewables. As Thomas Friedman suggests in his new book “Hot, Flat, and Crowded” we need to invent and create the new clean energy industry of the future, and sell it to rapidly developing nations. Countries such as China, who happens to be in dire need as their economy continues to grow by 10%. That is how we will balance our deficit, that is how we will regain our economic strength in the world, and that is how we can regain our respect in the international arena. So yes, we can promote renewables over nuclear as the “green” energy-source due to an environmental pragmatism, but more beneficial still is to prove their economic superiority.

As Americans we pride ourselves on our entrepreneurial spirit. So what is your entrepreneurial spirit telling you? We must look beyond the immediate goal of creating energy independence and think long-term, like an intelligent investor. We cannot become blinded by the goal of energy independence; we need to intelligently create a business that is sustainable, profitable, and scalable. That is the real competitive advantage of solar, wind, and other renewable technologies over nuclear. America needs to invest our time, our minds, and our federal budget in clean energy technologies that will lead to world industries. In so doing, we will become international leaders in the fight against climate change, while simultaneously guaranteeing our own futures in the world economy.

 
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1  Comment
  1. Hugh M
    November 3, 2008 8pm EST

    Well said. I have always been dubious of nuclear power due to the high upfront costs and potential radiation…but the economic benefit is the icing on the cake. What is keeping our government from pushing green technology further? Even if we incur a short-term loss, don’t they realize that the US will greatly benefit over the long-term?

 
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