New nuclear investment - an unmanageable risk?

Liberalization of electricity supply markets in many developed countries has led to significant charges in investment patterns. The decline in orders for nuclear stations has been one consequence, as investors require quick returns and so prefer less capital-intensive sources, notably natural gas. However, a system of tradable carbon emission permits could, in effect, create a guaranteed market for non-fossil fuelled electricity. Investment in more capital-intensive forms of electricity, such as nuclear power and renewables, would therefore present a lower economic risk. (author)