Parametric and Nonparametric Models of U.S. Cost Overruns for Nuclear Power Plants
This study presents new data-driven models to estimate the effect of capacity on the percentage of cost overruns in the United States for nuclear power plant construction projects before and after the Three Mile Island accident. Parametric and nonparametric models have been developed that describe the significant shifts in nuclear energy costs during the dynamic environment. Employing a contemporary descriptive methodology and a quantitative analysis, we furnish a comprehensive overview of the alterations in cost overrun distribution and show the changes observed in other pivotal metrics alongside cost overruns. Our emphasis lies in documenting the fluctuations in cost overruns alongside nuclear reactor capacity levels and the increase of the overnight capital costs to build nuclear reactors. Our results show that increasing the size of nuclear reactors is not a factor statistically significant to decrease the percentage of cost overruns, and the probit model results provide evidence that an increase in size increases the probability of having cost overruns larger than 100% (double the estimated cost). We also compare our findings to two other regions: Asia and Europe.