WASHINGTON--(BUSINESS WIRE)--Maryland’s nuclear energy plant contributes $397 million to the state’s gross domestic product (GDP), in addition to other economic and societal benefits, according to a new study conducted by economists at global consulting firm The Brattle Group.
The report estimates Maryland’s nuclear power plant’s contribution to the Maryland economy and to limiting greenhouse gas emissions. The research concludes that Maryland’s nuclear industry accounts for about 2,300 in-state full time jobs (direct and secondary) and provides nearly $15 million in net state tax revenues annually. Average annual carbon dioxide emissions would be about 9 million tons higher absent the generation from Maryland’s nuclear plant. This is worth an additional $392 million annually if valued at the U.S. government’s estimate for the social cost of carbon.
“The economic and environmental benefits of nuclear energy are often undervalued in national and state energy policy discussions,” said Dr. Mark Berkman, co-author of the report and a principal at The Brattle Group. “It is even more critical to consider the significant value of U.S. nuclear plants in a landscape where several factors threaten some nuclear facilities and could diminish the industry’s contribution to our electricity supply, the economy and the environment.”
“This report stresses the need to address the underlying challenges associated with premature nuclear energy plant shutdowns to ensure that Americans can continue to reap the indisputable benefits that these plants bring to the table,” said Nuclear Matters co-chair, former Senator Judd Gregg (R-NH). “The public and policymakers are seldom offered such starkly obvious public policy choices as working to ensure existing nuclear energy plants continue to operate.”
“Reducing carbon emissions is one of our country’s top priorities,” stated Nuclear Matters co-chair, former Senator Evan Bayh (D-IN). “And yet, in this carbon-constrained world, existing nuclear energy plants receive no value for their ability to generate an astounding amount of carbon-free, reliable energy. The answer to one of our biggest environmental and economic challenges lies, in part, in nuclear energy. Without nuclear power, it would be impossible to achieve our carbon reduction objectives.”
Nuclear energy provides almost 20% of the United States’ electricity. However, some nuclear plants are at risk of being prematurely shut down due to a confluence of economic and policy challenges.
“As Brattle’s findings underscore, not only is Maryland’s Calvert Cliffs nuclear power plant critical to providing reliable, carbon-free energy to the state, it is an economic powerhouse that contributes substantially to local communities,” said Chris Mudrick, Senior VP for North East Operations at Exelon, which operates the Calvert Cliffs plant. “This report puts a fine point on nuclear’s far-reaching impact as an engine for job creation and economic growth in the state.”
Nuclear energy in Maryland also helps keep electricity prices low, keeping wholesale prices down across all of PJM, including Maryland, by 1%. This is the primary means by which nuclear power boosts Maryland’s economy.
The report estimates Maryland’s nuclear plants’ economic value using Regional Economic Models, Inc. (REMI), a widely-used dynamic input-output model of the U.S. economy, linked with a simplified Brattle model of the U.S. electricity sector to better capture the dynamics of power markets and prices. By linking these models, the authors were able to measure the economic output, employment, and tax revenue in Maryland with and without its nuclear plant, providing the most accurate picture of their contribution to the economy.
“Maryland Nuclear Power Plant’s Contribution to the State Economy” was prepared for Nuclear Matters by The Brattle Group.
A national report that estimates the value of the entire nuclear industry to the U.S. economy, “The Nuclear Industry’s Contribution to the U.S. Economy,” was released in conjunction with the Maryland report. The national report concludes that the United States’ nuclear energy plants contribute $60 billion annually to national GDP, among other findings.
About Nuclear Matters
The mission of Nuclear Matters is to inform the public about the clear benefits that nuclear energy provides to our nation, to raise awareness of the economic challenges to nuclear energy that threaten those benefits, and to work with stakeholders to explore possible policy solutions that properly value nuclear energy as a reliable, affordable and carbon-free electricity resource that is essential to America’s energy future.
Supporters of Nuclear Matters include a range of companies and organizations in the energy industry, including Ameren Missouri, American Nuclear Insurers, Arizona Public Service Company, AREVA, Black & Veatch, POWER Engineers, Centrus Energy Corp. Dominion, Duke Energy, Energy Future Holdings Corporation, Energy Northwest, Entergy Corporation, Exelon Corporation, FirstEnergy Corp., GE Hitachi Nuclear Energy, Lightbridge Corporation, Nebraska Public Power District, NextEra Energy Inc., Omaha Public Power District, Pacific Gas and Electric Company, South Texas Project Nuclear Operating Company, Southern Company, Tennessee Valley Authority, and Westinghouse Electric Corporation.
About The Brattle Group
The Brattle Group analyzes complex economic, finance, and regulatory questions for corporations, law firms, and governments around the world. We are distinguished by the clarity of our insights and the credibility of our experts, which include leading international academics and industry specialists. For more information, please visit www.brattle.com.