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The Economics of Strategic Choice: U.S. Uranium Enrichment in the World Market: A Comment

George F. Combs, Jr.

Year: 1989
Volume: Volume 10
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol10-No1-17
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Abstract:
In an earlier paper in The Energy Journal, Bodde, Quasebarth, and Thomasian (1986) discussed two pricing options that the U.S. government could pursue in selling enrichment services to the market, and noted the likely outcomes that adherence to each strategy would produce. While the authors considered the structure of the enrichment market and the cost advantages of new enrichment technology, they failed to take into account enrichment's role in the nuclear fuel cycle, particularly the degree to which enrichment and uranium can be substituted for one another. This omission is particularly significant, given the potential for the relative economics of enrichment and uranium to be affected due to the cost improvements and technological advances being made in enrichment.





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