Evaluation of the Optimal Strategies for Reducing the Cost of Nuclear Energy Investments

Authors

  • Serhat Yüksel İstanbul Medipol University
  • Hasan Dinçer İstanbul Medipol University
  • Büşra Çelebi İstanbul Medipol University
  • Duygu Yavuz İstanbul Medipol University

Keywords:

Energy Finance, Nuclear Energy Investment, Cost Management

Abstract

Effective cost management is of great importance for the sustainability of nuclear reactors. Effective cost management enables nuclear reactors to compete with other energy sources. On the other hand, this may make it attractive to invest in the nuclear energy sector. Effective cost management also enables nuclear reactor projects to optimize their entire life cycle costs. In summary, there is a significant need to identify important actions necessary to optimize costs in nuclear reactors. The purpose of this study is to determine the most critical ways to minimize costs in nuclear power plants. In this scope, an evaluation has been conducted with DEMATEL technique. With the help of these analysis results, it can be possible to generate appropriate strategies for the effective cost management of the nuclear power plants. The findings indicate that technological investments play a key role to provide cost effectiveness of the nuclear power plants. Moreover, financial incentives should also be provided to reach this objective. Nonetheless, small module reactors and social acceptability have lower significance. Therefore, it is recommended that technological investments should be prioritized to increase the efficiency of nuclear power plants and the level of safety. Advanced technologies can provide advantages such as more efficient fuel use, higher energy production and less nuclear waste generation. Moreover, financial incentives provided by the government can play an important role in ensuring the cost-effectiveness of nuclear power plants. Within this framework, the government should offer various financial supports that encourage investment in nuclear power plant projects. These incentives can make it easier for private sector investors to engage in projects and raise capital.

References

Akar, A. U., Uyan, M., & Yalpir, S. (2023). Spatial evaluation of the nuclear power plant installation based on energy demand for sustainable energy policy. Environment, Development and Sustainability, 1-36.

Aksoy, T., Yüksel, S., Dinçer, H., Hacioğlu, Ü., Mikhaylov, A., & Muyeen, S. M. (2023). Assessing the electricity production capacities of emerging markets for the sustainable investments. IEEE Access, 11, 24574-24590.

Apostoaei, A. V. (2021). Exploring the Viability of Investment in Small Modular Nuclear Reactors (SMRs): Mitigating Climate Change through Advancements in Energy Generation.

Bhuiyan, M. A., Dinçer, H., Yüksel, S., Mikhaylov, A., Danish, M. S. S., Pinter, G., ... & Stepanova, D. (2022). Economic indicators and bioenergy supply in developed economies: QROF-DEMATEL and random forest models. Energy Reports, 8, 561-570.

Caglar, A. E. (2023). Can nuclear energy technology budgets pave the way for a transition toward low‐carbon economy: insights from the United Kingdom. Sustainable Development, 31(1), 198-210.

Çağlayan, Ç., Kararoğlu, D., & Yavuz, D. (2022). Determining the Right Location for Turkey’s Nuclear Energy Investment Projects Based on Zero-carbon Emission Purposes. In Clean Energy Investments for Zero Emission Projects: An Analysis on How to Reduce the Carbon Footprint (pp. 77-88). Cham: Springer International Publishing

Carayannis, E., Kostis, P., Dinçer, H., & Yüksel, S. (2023). Quality Function Deployment-Oriented Strategic Outlook to Sustainable Energy Policies Based on Quintuple Innovation Helix. Journal of the Knowledge Economy, 1-19.

Chen, R., & Kong, Y. (2023). A comprehensive review of greenhouse gas based on subject categories. Science of The Total Environment, 866, 161314.

Demir Uslu, Y., Dinçer, H., Yüksel, S., Gedikli, E., & Yılmaz, E. (2022). An integrated decision-making approach based on q-rung orthopair fuzzy sets in service industry. International Journal of Computational Intelligence Systems, 15(1), 14.

Devanand, A., Kraft, M., & Karimi, I. A. (2019). Optimal site selection for modular nuclear power plants. Computers & Chemical Engineering, 125, 339-350.

Di Maio, F., Bani, L., & Zio, E. (2022). The Contribution of Small Modular Reactors to the Resilience of Power Supply. Journal of Nuclear Engineering, 3(2), 152-162.

Dinçer, H., & Uluer, G. S. (2021). Significant Issues of Nuclear Energy Investment Decisions for Energy Importer Countries. Economics Literature, 3(1), 1-12.

Dinçer, H., Wang, Q., Li, R., Yüksel, S., Çelebi, B., & Vatandaş, E. (2023). The Impacts of Energy Transparency for the Improvements of Health Tourism. In Economic Development and the Environmental Ecosystem: The Role of Energy Policy in Economic Growth (pp. 101-114). Cham: Springer Nature Switzerland.

Dinçer, H., Yüksel, S., Çağlayan, Ç., & Uluer, G. S. (2020). The contribution of nuclear energy investment on sustainable financial and economic development. Journal of Financial Economics and Banking, 1(1), 39-51.

Dinçer, H., Yüksel, S., Uluer, G. S., & Çağlayan, Ç. (2022).Green Nuclear Energy: A Solution of Environmental Sustainability for Emerging Economies. In Environmental Sustainability, Growth Trajectory and Gender: Contemporary Issues of Developing Economies (pp. 63-73). Emerald Publishing Limited

Dong, A., Chen, D., Li, Q., & Qian, J. (2023). Metal‐Organic Frameworks for Greenhouse Gas Applications. Small, 19(10), 2201550.

Egieya, J. M., Amidu, M. A., & Hachaichi, M. (2023). Small modular reactors: An assessment of workforce requirements and operating costs. Progress in Nuclear Energy, 159, 104632.

Eti, S., Dinçer, H., Gökalp, Y., Yüksel, S., & Kararoğlu, D. (2023). Identifying Key Issues to Handle the Inflation Problem in the Healthcare Industry Caused by Energy Prices: An Evaluation With Decision-Making Models. Managing Inflation and Supply Chain Disruptions in the Global Economy, 162-178.

Fang, X., Qu, Z., Sun, C., Wu, C., & Wei, J. (2022). Public attitude and policy selection of future energy sustainability in China: evidence of the survey of the college students. Energy Policy, 165, 112961.

Ford, M. J., & Abdulla, A. (2023). New methods for evaluating energy infrastructure development risks. Risk Analysis, 43(3), 624-640.

Halkos, G., & Zisiadou, A. (2023). Energy Crisis Risk Mitigation through Nuclear Power and RES as Alternative Solutions towards Self-Sufficiency. Journal of Risk and Financial Management, 16(1), 45.

Ibrahim, O., Bakare, M. S., Amosa, T. I., Otuoze, A. O., Owonikoko, W. O., Ali, E. M., ... & Ogunbiyi, O. (2023). Development of fuzzy logic-based demand-side energy management system for hybrid energy sources. Energy Conversion and Management: X, 18, 100354.

Imran, M., Zaman, K., Nassani, A. A., Dincă, G., & Haffar, M. (2023). Does nuclear energy reduce carbon emissions despite using fuels and chemicals? Transition to clean energy and finance for green solutions. Geoscience Frontiers, 101608.

Inui, Y. (2023). Nuclear energy policy and city planning in the early days of nuclear energy development: Analysis of the construction process of the atomic center in Tokai Village. Japan Architectural Review, 6(1), e12325.

Iqbal, M., Moss, R., & Van Woerden, I. (2022). Peoples’ Perception towards Nuclear Energy. Energies, 15(12), 4397.

Javanmard, M. E., Tang, Y., Wang, Z., & Tontiwachwuthikul, P. (2023). Forecast energy demand, CO2 emissions and energy resource impacts for the transportation sector. Applied Energy, 338, 120830.

Kamani, D., & Ardehali, M. M. (2023). Long-term forecast of electrical energy consumption with considerations for solar and wind energy sources. Energy, 268, 126617.

Kartal, M. T., Samour, A., Adebayo, T. S., & Depren, S. K. (2023). Do nuclear energy and renewable energy surge environmental quality in the United States? New insights from novel bootstrap Fourier Granger causality in quantiles approach. Progress in Nuclear Energy, 155, 104509.

Kharitonov, V. V., Semenova, D. Y., & Akinfeeva, E. V. (2021). Investment Performance Predictions in the Digitization of Nuclear Energy. Studies on Russian Economic Development, 32(6), 662-667.

Kim, S. (2020). The effects of foreign direct investment, economic growth, industrial structure, renewable and nuclear energy, and urbanization on Korean greenhouse gas emissions. Sustainability, 12(4), 1625.

Kostis, P., Dinçer, H., & Yüksel, S. (2022). Knowledge-based energy investments of European economies and policy recommendations for sustainable development. Journal of the Knowledge Economy, 1-33.

Kou, G., Pamucar, D., Dinçer, H., & Yüksel, S. (2023). From risks to rewards: A comprehensive guide to sustainable investment decisions in renewable energy using a hybrid facial expression-based fuzzy decision-making approach. Applied Soft Computing, 110365.

Kumar, C. M. S., Singh, S., Gupta, M. K., Nimdeo, Y. M., Raushan, R., Deorankar, A. V., ... & Nannaware, A. D. (2023). Solar energy: A promising renewable source for meeting energy demand in Indian agriculture applications. Sustainable Energy Technologies and Assessments, 55, 102905.

Martínez, L., Dinçer, H., & Yüksel, S. (2023). A hybrid decision making approach for new service development process of renewable energy investment. Applied Soft Computing, 133, 109897.

Moiseev, N., Mikhaylov, A., Dinçer, H., & Yüksel, S. (2023). Market capitalization shock effects on open innovation models in e-commerce: golden cut q-rung orthopair fuzzy multicriteria decision-making analysis. Financial Innovation, 9(1), 55.

Niu, X., Yüksel, S., & Dinçer, H. (2023). Emission strategy selection for the circular economy-based production investments with the enhanced decision support system. Energy, 274, 127446.

Özdemirci, F., Yüksel, S., Dinçer, H., & Eti, S. (2023). An assessment of alternative social banking systems using T-Spherical fuzzy TOP-DEMATEL approach. Decision Analytics Journal, 100184.

Pata, U. K., & Kartal, M. T. (2023). Impact of nuclear and renewable energy sources on environment quality: Testing the EKC and LCC hypotheses for South Korea. Nuclear Engineering and Technology, 55(2), 587-594.

Prades-Gil, C., Viana-Fons, J. D., Masip, X., Cazorla-Marín, A., & Gómez-Navarro, T. (2023). An agile heating and cooling energy demand model for residential buildings. Case study in a mediterranean city residential sector. Renewable and Sustainable Energy Reviews, 175, 113166.

Rohacs, D. (2023). Analysis and optimization of potential energy sources for residential building application. Energy, 127508.

Sarker, A. K., Azad, A. K., Rasul, M. G., & Doppalapudi, A. T. (2023). Prospect of Green Hydrogen Generation from Hybrid Renewable Energy Sources: A Review. Energies, 16(3), 1556.

Stašáková, T., & Vlček, T. (2022). The multiple‐criteria decision analysis of the financial and business models for the construction of new nuclear unit in the Czech Republic. Journal of Multi‐Criteria Decision Analysis, 29(3-4), 230-243

Stozhko, K. P., Stozhko, D. K., Shilovtsev, A. V., Sorokina, N., & Makarova, T. (2022). “Green Economy”, nuclear energy and “natural capitalism”: dialectics of development. In IOP Conference Series: Earth and Environmental Science (Vol. 949, No. 1, p. 012053). IOP Publishing.

Sun, L., Peng, J., Dinçer, H., & Yüksel, S. (2022). Coalition-oriented strategic selection of renewable energy system alternatives using q-ROF DEMATEL with golden cut. Energy, 256, 124606.

Susiati, H., Dede, M., Widiawaty, M. A., Ismail, A., & Udiyani, P. M. (2022). Site suitability-based spatial-weighted multicriteria analysis for nuclear power plants in Indonesia. Heliyon, 8(3), e09088.

Tantau, A., Puscasu, G. M., Cristache, S. E., Alpopi, C., Fratila, L., Moise, D., & Ciobotar, G. N. (2022). A Deep Understanding of Romanian Attitude and Perception Regarding Nuclear Energy as Green Investment Promoted by the European Green Deal. Energies, 16(1), 272.

Usman, M., Jahanger, A., Makhdum, M. S. A., Radulescu, M., Balsalobre-Lorente, D., & Jianu, E. (2022). An empirical investigation of ecological footprint using nuclear energy, industrialization, fossil fuels and foreign direct investment. Energies, 15(17), 6442.

Vinoya, C. L., Ubando, A. T., Culaba, A. B., & Chen, W. H. (2023). State-of-the-Art Review of Small Modular Reactors. Energies, 16(7), 3224.

Wan, Q., Miao, X., Wang, C., Dinçer, H., & Yüksel, S. (2023). A hybrid decision support system with golden cut and bipolar q-ROFSs for evaluating the risk-based strategic priorities of fintech lending for clean energy projects. Financial Innovation, 9(1), 1-25.

Wen, H., Liu, X., Yang, M., Lei, B., Cheng, X., & Chen, Z. (2023). An energy demand-side management and net metering decision framework. Energy, 271, 127075.

Xu, X., Yüksel, S., & Dinçer, H. (2023). An integrated decision-making approach with golden cut and bipolar q-ROFSs to renewable energy storage investments. International Journal of Fuzzy Systems, 25(1), 168-181.

Yuan, G., Xie, F., Dinçer, H., & Yüksel, S. (2021). The theory of inventive problem solving (TRIZ)‐based strategic mapping of green nuclear energy investments with spherical fuzzy group decision‐making approach. International Journal of Energy Research, 45(8), 12284-12300.

Yue, X., Peng, M. Y. P., Anser, M. K., Nassani, A. A., Haffar, M., & Zaman, K. (2022). The role of carbon taxes, clean fuels, and renewable energy in promoting sustainable development: How green is nuclear energy?. Renewable Energy, 193, 167-178

Yüksel, S., & Dinçer, H. (2023). Sustainability analysis of digital transformation and circular industrialization with quantum spherical fuzzy modeling and golden cuts. Applied Soft Computing, 138, 110192.

Yüksel, S., Dinçer, H., & Çelebi, B. Priority Analysis of Problems Encountered in Renewable Energy Investments. Maruf İktisat İslâm İktisadı Araştırmaları Dergisi, 2(2), 21-34.

Yüksel, S., Dinçer, H., Çağlayan, Ç., & Uluer, G. S. (2023). The Role of Nuclear Energy to Reduce Carbon Emission. In The Impact of Environmental Emissions and Aggregate Economic Activity on Industry: Theoretical and Empirical Perspectives (pp. 67-77). Emerald Publishing Limited.

Yüksel, S., Dinçer, H., Çağlayan, Ç., Mikhaylov, A., & Yavuz, D. (2023). Evaluating the Advantages and Disadvantages of Thorium-Based Nuclear Power Plants. In Renewable Energy Investments for Sustainable Business Projects (pp. 165-175). Emerald Publishing Limited.

Yüksel, S., Ubay, G. G., & Çelebi, B. (2023). The negative role of environmental pollution on international trade: Strategy recommendation to solve this problem. In Research Anthology on Macroeconomics and the Achievement of Global Stability (pp. 1288-1304). IGI Global.

Zawalińska, K., Kinnunen, J., Gradziuk, P., & Celińska-Janowicz, D. (2020). To whom should we grant a power plant? Economic effects of investment in nuclear energy in Poland. Energies, 13(11), 2687

Downloads

Published

2023-10-24

How to Cite

Yüksel, S., Dinçer, H., Çelebi, B., & Yavuz, D. (2023). Evaluation of the Optimal Strategies for Reducing the Cost of Nuclear Energy Investments. Journal of Financial Economics and Banking, 4(2), 79-87. Retrieved from https://jofeb.org/index.php/jofeb/article/view/50

Issue

Section

Research Articles