Nuclear power plants running today provide reliable, carbon-free electricity without emitting pollutants that harm human health. Studies show nuclear energy has the lowest life cycle greenhouse gas emissions per unit of energy of all major low-carbon sources. So with proper regulations and safety protocols in place, expanding nuclear power can make a valuable contribution to addressing the urgent challenges of energy security and climate change. However, private companies have been hesitant to invest in new nuclear plants due to high upfront costs and long timelines to recoup investments. To overcome these economic barriers, many analysts argue governments must provide initial subsidies and incentives to kick-start additional nuclear projects. Without such public support to bring costs down and financing risks under control, the nuclear industry is unlikely to grow to a scale that optimally utilizes its potential benefits.

While subsidies and incentives carry the risk of distorting markets or misallocating funds, well-designed policies tailored specifically to overcome existing market failures could maximize social welfare by internalizing positive externalities of clean, reliable nuclear energy. temporary public support that phases out over time as costs decrease could jumpstart a transition towards a more sustainable energy system. As society comes to properly value attributes like pollution reduction, energy security and grid stability, energy markets will naturally begin to favor the technologies that provide them most efficiently. In this way, strategic and bounded subsidies for carbon-free nuclear power represent an investment in innovations to equip future generations with the affordable, secure and sustainable energy resources needed to thrive.