If you would like to learn more about the IAEA’s work, sign up for our weekly updates containing our most important news, multimedia and more.
Assessing the National and Regional Economic and Social Effects of Nuclear Programmes
Closed for proposals
Project Type
Project Code
I12005CRP
2019Approved Date
Status
Start Date
Expected End Date
Completed Date
12 December 2018Description
Participants in this CRP will review, test and apply prototype methodologies (quantitative models) to analyse economic and social impacts of nuclear programmes at the national and regional level. These methods assist policy makers in analysing key implications from nuclear projects. The IAEA has already initiated preparatory work on developing a set of analytical tools and frameworks for assessing the social and economic impacts of nuclear programmes. CRP participants will share their experiences in using IAEA tools for quantitative macroeconomic analysis of nuclear projects or their own existing models or tools, but Member States (MSs) with limited experience (“newcomers”) are also expected to benefit from CRP. This CRP will seek innovative ways of quantitative impact analysis by coordinating research efforts in MSs and supportive in-house activities.
Objectives
The overall objective of this CRP is to enhance capabilities of Member States for macroeconomic impact analysis of nuclear projects at the national and regional level through introduction (further-development) of state-of-the-art economic modelling techniques and databases. In terms of policy-making, it is intended that this CRP will help Member States embarking on new nuclear programmes to objectively gauge how those programmes would perform in the overall context of their national economy. The CRP has been designed under the auspices of IAEA Subprogramme 1.3.2 (Energy Economy Environmental Analysis) whose overall objective is to achieve better understanding of nuclear technology’s contribution to socioeconomic development and climate protection and its compatibility with national sustainable development objectives in Member States. Insofar as economic analysis remains arguably the most significant issue forced by Member States, this CRP falls within the boundaries of 1.3.2.1 (topical issues related to technoeconomic analysis).
Specific objectives
To improve understanding of economic benefits and challenges faced by Member States embarking on new nuclear programmes.
To compile current knowledge in a report together with areas of future research and development to cover modelling techniques, data restrictions and means to manage data gaps.
To review, test and apply prototype methodologies (quantitative models) to analyse economic and social impacts of nuclear programmes at the national and region level.
Impact
The IAEA Milestone Approach encourages Member States to consider to what extent potential impacts from a nuclear power programme on the country’s overall goals for macroeconomic development — including but not limited to employment generation — may support or discourage its adoption. In particular, the Milestone document recommends conducting “an evaluation of the impacts of nuclear power on the national economy, for example gross domestic product and employment” during Phase 1, and including it as an item into the comprehensive report ([1], p. 12). The Milestones Approach thereby recommends conducting a macroeconomic analysis in addition to studies on energy demand and energy supply options.
The IAEA EMPOWER model, developed to assist MSs in such an analysis, has been reviewed within this CRP. All national research teams find that the EMPOWER is a useful and appropriate tool to assess macroeconomic and sectoral impacts of building and operating an NPP. Some teams note that the model can also be used for analysing impacts of other types of power plant projects for comparing various options. The flexibility and applicability of the EMPOWER is particularly valuable for developing countries where the availability of and experience in using input-output analysis and other quantitative economic tools (e.g. CGE models) is limited. All research teams confirm that the EMPOWER made available by the IAEA for the present CRP is running well. The EMPOWER turns out to be sufficiently flexible to allow users to specify alternative versions for comparing results under different assumptions. therefore, it's expected that this new tool
It is also expected that the results of this CRP will help Member States embarking on new nuclear programmes to objectively gauge whether those programmes would be realistic and desirable in the overall context of their national economies.
For example, it has been reported by a CRP participant that "the Government of the Republic of Croatia, its ministers and government agencies have started to understand the importance of macroeconomic analyses based on IOTs, i.e. input-output analysis, in preparing strategic documents in accordance with the prerequisites of the European Union which also require the calculation of macroeconomic effects of major investments in the energy sector."
Relevance
As mentioned above, there are benefits to the science and academia in form of published articles and reports.
In addition, a new course on input-output analysis has been introduced at University of Zagreb, Faculty of Economics and Business. The acquired knowledge shall be passed on to students and will educate them in their further understanding and application of macroeconomic analysis.
Finally, new activities have been inspired by this CRP:
- IAEA CRP on "Potential Role of Nuclear Energy in National Climate Change Mitigation Strategies" in which EMPOWER model has been used and further extended;
- IAEA Interregional TC project "Promoting Sustainability and Self Reliance of National Nuclear Institutions" in which IAEA’s EMPOWER model has been linked to UNIDO’s COMFAR model.