Regional differences in nuclear and fossil-fuel generation of electricity

Previous research on electric generation costs has mainly relied on economy-wide data. This study disaggregates a broad sample into regions known to have marked differences in fossil fuel availability, climate, regulatory effects, and other variables. We find differences exist in generation costs among the studied regions and nuclear power, using estimates of scale economies and other measures. We also find smaller minimum efficient size fossil-fuel firms than previous studies, based on recent cost information. This study provides insights into several industry structure issues, such as capacity expansion, competition, input costs, environmental policy, and transmission access.