John E Parsons

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John E Parsons

John E Parsons

@WildeEcon

Financial economist at MIT working on energy, environment and risk. Used to have a great crystal ball, but it's now in for repairs. Image: Barlach's Reader

Katılım Kasım 2019
317 Takip Edilen649 Takipçiler
Fred Stafford
Fred Stafford@fredstaffordcs·
@Matthuber78 Unlike me, a pure soul, who never considered himself an environmentalist, let alone a hippie one
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Matthew Chapman
Matthew Chapman@fawfulfan·
First, desalination produces tons of waste brine and you have to dump it somewhere. The bay and waters around Corpus are more ecologically sensitive than other places where desalination is in wide use. Brine dumping could wipe out marine life and harm the area's fishing industry.
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Matthew Chapman
Matthew Chapman@fawfulfan·
I'm not categorically opposed to desalination, but whether it makes sense for a region depends on a lot of complicated factors, and I'm skeptical it's going to be an easy or effective solution for Corpus Christi's water problem specifically, for a couple reasons.
John E Parsons@WildeEcon

@fawfulfan Are you categorically opposed to desalination, or is there a way to benefit from it consistent with the environment and economic progress?

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John E Parsons
John E Parsons@WildeEcon·
@fawfulfan If you had a cite on this, I’d appreciate it. Obviously the brine would have to be dispersed properly and beyond the barrier island. Don’t see a problem with that. Tampa does it. Israel does it. The Gulf states do it.
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John E Parsons
John E Parsons@WildeEcon·
@fawfulfan Are you categorically opposed to desalination, or is there a way to benefit from it consistent with the environment and economic progress?
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Matthew Chapman
Matthew Chapman@fawfulfan·
Moreover, Abbott doesn't seem to understand the issue! The main thing he's mad about is CC isn't building enough desal plants to keep feeding the refineries, which isn't a good solution! It's not going to prevent energy costs spiking, and it's going to pollute the bay even more.
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Matthew Chapman
Matthew Chapman@fawfulfan·
Wait just a minute here. While @GregAbbott_TX is right to be worried Corpus Christi mismanaged its water, the main way they did that is by allowing too many oil refineries. Up to now, I haven't ONCE seen Abbott tell cities to moderate the resource use of the O&G industry, EVER.
Adam Schwager@schwagerTV

I got the chance to ask @GregAbbott_TX about @DylanBaddour's recent reporting on Corpus Christi's water crisis. He doesn't seem happy with CC local leaders: "We can only give them a little time more before the state of Texas has to take over and micromanage that city..." #txlege

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John E Parsons
John E Parsons@WildeEcon·
@Atomicrod That news article sounds like it was written by a particularly bad LLM. It wanders all over the place and mention of "financial qualifications" is done in isolation with no elaboration whatsoever. I wouldn't take it as a basis for understanding the complaint.
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Rod Adams
Rod Adams@Atomicrod·
How can a project whose backers include DOW (market cap - $22 B), Amazon, the US Department of Energy and X-Energy be challenged based on "financial qualifications?" The Atomic Safety and Licensing Board has apparently accepted an intervention by San Antonio Bay Estuarine Waterkeeper in the case of the Seadrift, TX project for just that reason. I'm befuddled. Can anyone help me understand this decision?
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John E Parsons
John E Parsons@WildeEcon·
@TedNordhaus Very disappointing to see what ought to be an evidence based discussion be dragged into the gutter with ad hominem attacks and charged adjectives more suitable to online rage agents.
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Ted Nordhaus
Ted Nordhaus@TedNordhaus·
Finally, a reminder that the status quo that all this reporting is defending has presided over the long-term decline of nuclear energy in the United States with grave public health consequences. My full take on the public confidence game and how dangerous it is here: breakthroughjournal.org/p/the-public-c…
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Ted Nordhaus
Ted Nordhaus@TedNordhaus·
A reminder as we get a wave of alarmist reporting based upon handwringing from the usual suspects about NRC independence and commitment to safety, that nothing being discussed here will have any measurable consequence for public health.
Ted Nordhaus tweet mediaTed Nordhaus tweet media
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Nick Touran
Nick Touran@whatisnuclear·
Wherein I try (but apparently fail) to convince @Dr_Keefer that now is the time for commercial nuclear-powered maritime applications. If the NS Savannah had been designed for containers, the economics may have shifted in its favor even back in the early 70s! Today, increased automation may make things even better. Add in all the strong desire to increase dominance and clean up emissions, and things are looking good.
chris keefer@Dr_Keefer

Every few decades, civilian nuclear propulsion at sea reappears as a serious proposal, often catalyzed by a familiar external pressure. Rising fuel costs, geopolitical disruption, or, more recently, climate driven decarbonization targets renew interest in an energy source with extraordinary power density, infrequent refuellings, and sustained high power output which, on paper, appear tailor made for long haul shipping. And yet, after seventy years of experiments, prototypes, and near misses, nuclear propulsion remains confined to narrow use cases: submarines, aircraft carriers, icebreakers, and a single cargo ship on the Russian Northern Sea Route operating at the margins of the commercial world. This recurring pattern is not accidental. It reflects a stable equilibrium between what nuclear propulsion offers at sea and what it costs, institutionally and logistically as much as financially, to deploy it. Climate pressure raises the value of zero emission propulsion and keeps nuclear shipping returning to the agenda, but it does not alter the underlying physics or economics. Where nuclear propulsion removes a binding physical constraint, it transforms operations. Where its advantages are incremental rather than decisive, it struggles to justify its burdens. Where Nuclear Propulsion Wins Decisively Submarines are the cleanest case. Nuclear propulsion did not merely improve submarines, it redefined them. Diesel electric submarines were essentially surface ships with the ability to submerge. They were constrained by snorkeling, refueling, low speed, and limited endurance. Nuclear propulsion erased those constraints simultaneously. Speed, stealth, endurance, and global reach all shifted by orders of magnitude, not by margins. The constraint on submersion time became calories for the crew, not fuel for the vessel. Aircraft carriers follow a similar logic, though for different reasons. Carrier aviation imposes extreme power demands. Launching aircraft from a short deck requires sustained high speed into the wind, and fuel consumption rises sharply with speed. For large displacement ships, propulsion power scales roughly with the cube of speed, meaning that doubling speed can require on the order of eight times more fuel. For a carrier that must repeatedly generate high wind over deck to support flight operations, nuclear propulsion removes a severe fuel and endurance constraint. Another underappreciated reason nuclear propulsion makes sense for carriers is fuel volume. The conventionally powered John F. Kennedy 1968-2007, for example, required about 3.2 million gallons of diesel for the ship itself, in addition to roughly 3 million gallons of JP-5 aviation fuel for its air wing. Together that is almost ten Olympic swimming pools of fuel. Nuclear propulsion therefore frees vast internal volume for aviation fuel, weapons, and operational flexibility, which becomes a decisive advantage for sustained air operations. Nuclear icebreakers represent a third category where propulsion is mission enabling rather than incrementally beneficial. Icebreaking imposes continuous, high power demands over long durations, often in remote regions where refueling is impractical or impossible and failure carries severe operational risk. Nuclear propulsion allows icebreakers to operate for extended seasons with sustained power output independent of fuel supply. In this context, nuclear propulsion solves a hard physical constraint rather than optimizing around cost. In all three cases, nuclear propulsion enables missions that otherwise become impractical or impossible. Where it merely improves efficiency or endurance at the margin, its advantages fade. Surface combatants such as cruisers illustrate the limits clearly. Unlike submarines, they already operate within a dense replenishment ecosystem. Aircraft carriers must be resupplied with aviation fuel every few days during high tempo operations, and that same logistics train routinely delivers fuel to the escorting cruisers and destroyers. Refueling surface combatants at sea is therefore not a binding constraint. Nuclear powered cruisers gained endurance and speed, but they did not gain a fundamentally new mission or operating concept. They still required large crews, complex maintenance, and expensive mid-life refueling overhauls that imposed long periods out of service. Once the decisive logistical advantage disappears, nuclear propulsion becomes difficult to justify. Around ten percent of US cruisers were nuclear powered during the Cold War. Ultimately, they were all decommissioned not because they performed poorly, but because their incremental benefits no longer outweighed their incremental costs as budgets tightened. Civilian Shipping and the Limits of the Nuclear Advantage Civilian shipping pushes this logic even further. Cargo ships exist to move mass at the lowest possible cost per tonne mile. Fuel is important, but it is only one component of a broader cost structure that includes capital cost, crew size, insurance, port access, regulatory compliance, maintenance regimes, and schedule reliability. Unlike submarines or aircraft carriers, civilian cargo ships do not exist to deliver unique capabilities. They exist to minimize cost within an intensely competitive global system. Nuclear propulsion dramatically reduces fuel logistics, but it increases almost everything else. That tradeoff sits at the core of why civilian nuclear shipping repeatedly proved technically viable yet economically fragile. During the Cold War, only four civilian nuclear powered cargo ships ever entered service. Each was launched for a different reason. Each functioned technically. Each was ultimately withdrawn for economic or political reasons rather than technical failure. The NS Savannah The first was the Savannah, launched in 1959 and brought critical in 1961 as part of the Eisenhower administration’s Atoms for Peace program. It was conceived less as a competitive cargo vessel than as a floating demonstration of peaceful nuclear technology. The ship carried passengers and cargo, operated a pressurized water reactor designed by Babcock and Wilcox, and entered service in 1962. Over the 1960s it visited dozens of domestic and foreign ports and transited the Panama Canal, forcing regulators to invent procedures for nuclear ship entry, low power maneuvering, tug escort, and liability coverage. From an engineering standpoint the ship operated as intended, and as a diplomatic project it achieved its purpose, but it was never designed to compete economically with conventional cargo vessels. Built before containerization and operated with higher crew requirements and bespoke regulatory treatment, Savannah was decommissioned in 1970 once its demonstration value was exhausted. The Otto Hahn West Germany’s Otto Hahn, launched in 1968, represented a more serious attempt to integrate nuclear propulsion into a working cargo vessel. Unlike Savannah, it was designed from the outset as an ore carrier rather than a political exhibit. Its reactor, also designed by Babcock and Wilcox, was an integral pressurized water reactor that compressed the primary system into a single pressure vessel, reducing volume, mass, and piping complexity. Otto Hahn operated successfully for years and demonstrated that nuclear propulsion could function reliably in commercial service. Yet its economics remained marginal. Nuclear trained crew commanded wage premiums, regulatory oversight remained exceptional rather than routine, and access to key maritime chokepoints remained restricted, with Otto Hahn denied transit through both the Panama and Suez Canals while nuclear powered. When fuel prices fell and conventional propulsion improved, the narrow economic window closed. The reactor was removed and the ship continued service under diesel propulsion. The Mutsu Japan’s Mutsu, launched in 1970 and completed in 1974, exposed a different vulnerability. During initial low power testing at sea, a shielding design flaw allowed fast neutrons to stream into unintended areas of the ship. There was no fission product release, but radiation was detected where it should not have been. Correcting the problem required substantial additional shielding, structural modifications, and reconfiguration of internal spaces. The technical issue was fixable. The political damage was not. Fishermen protested, ports refused entry, and national headlines declared radioactive leakage. After years of redesign and delay, Mutsu operated only briefly before being shut down, illustrating how unforgiving civilian nuclear shipping could be. The Sevmorput The most durable example was the Soviet Union’s Sevmorput, launched in 1986. Unlike its Western counterparts, it occupied a niche, the Northern Sea Route, where nuclear propulsion addressed a genuine physical constraint rather than offering a marginal economic improvement. Designed as a Lighter Aboard Ship (LASH) vessel, it carried cargo in self contained barges that could be offloaded to shallow, undeveloped, or icebound ports inaccessible to conventional deep draft ships. While not a true icebreaker, it was built with a reinforced ice class hull that allowed it to operate in heavy ice conditions and transit icebreaker opened channels along the Northern Sea Route. In Arctic waters, refueling is difficult, weather is unforgiving, port infrastructure is sparse, and sustained propulsion power is operationally essential. Nuclear propulsion offered a functional advantage that conventional alternatives struggled to match. Even here, the equilibrium remained fragile. Sevmorput spent long periods laid up, and its utilization depended heavily on state support, Arctic traffic levels, and geopolitical priorities. It did not establish a template for global nuclear cargo shipping. It carved out a narrow role where alternatives failed physically, not merely economically. That pattern aligns with Russia’s broader nuclear icebreaker fleet, where nuclear propulsion succeeds by removing binding physical constraints rather than marginally improving fuel economics. Taken together, these cases reveal a consistent pattern. Civilian nuclear propulsion worked technically. It failed economically except where it solved problems that conventional propulsion could not. Decarbonization Pressure Changes the Debate, But Not the Physics The renewed interest in nuclear shipping today has been driven primarily by emissions constraints rather than fuel logistics. The International Maritime Organization has advanced decarbonization targets that push commercial shipping toward net zero emissions by mid century. Alternative fuels such as ammonia, methanol, and synthetic hydrocarbons impose penalties in energy density, handling risk, infrastructure requirements, or cost. Against this backdrop, nuclear propulsion reemerges as one of the few options capable of eliminating operational emissions without reducing range, speed, or payload. That shift matters, but it does not dissolve the underlying cost and complexity problem. Decarbonization increases the value of zero emission propulsion, yet it does not remove the institutional overhead associated with nuclear systems. Political resistance further complicates the picture. Efforts by Donald Trump to pressure the International Maritime Organization to retreat from its decarbonization agenda underscore a key difference between nuclear safety regulation and climate policy. Nuclear safety enjoys broad international consensus. Maritime decarbonization does not. If climate policy fragments along geopolitical lines, the main incentive structure favoring nuclear propulsion weakens significantly. The central question remains whether climate pressure becomes strong enough to outweigh cost sensitivity in a sector defined by thin margins and relentless competition. Advanced Reactor Concepts Reappear, but the Old Tradeoffs Remain Renewed interest in nuclear shipping has revived familiar reactor concepts. Molten salt reactors, high temperature gas reactors, and other advanced designs are often presented as better suited for maritime use, promising lower pressure operation, inherent safety, or improved flexibility. These arguments are not new. Similar concepts were explored extensively during the early decades of naval nuclear development. That experience produced a clear outcome. After testing a wide range of unconventional reactors, pressurized water reactors emerged as the near universal solution not by convention, but by elimination. Liquid metal cooled reactors were operated at sea in both US and Soviet submarines, while organic cooled and other exotic concepts were tested in prototype form. None delivered a decisive improvement once size, power density, reliability, maintainability, and crew requirements were fully considered. Water’s role as both coolant and moderator enables compact, high power density cores that integrate efficiently into ship hulls. At sea, compactness directly affects stability, shielding mass, and usable volume. Designs with lower power density impose cascading penalties that grow rapidly in space and weight constrained environments. Water cooled systems also align naturally with the marine environment. The ocean is an effectively infinite heat sink, and water cooled reactors tolerate water ingress. By contrast, gas cooled reactors suffer from low power density, while molten salt reactors embed fission products within circulating fuel. In such systems, the entire primary circuit becomes highly radioactive, turning pumps, valves, and heat exchangers into persistent radiation sources and complicating routine maintenance. Technology readiness carries disproportionate weight at sea. Maritime reactors must endure constant motion, vibration, and long operating intervals with limited maintenance access. Pressurized water reactors have accumulated decades of operational experience under these conditions. Advanced reactor concepts have not. Advanced reactors may eventually find a role in nuclear shipping, but history suggests that success will depend on demonstrated performance rather than assumed superiority. The persistence of pressurized water reactors reflects a fit between physics, engineering, and operational reality that remains largely unchanged. A Narrow Commercial Niche, and an Aviation Analogy If civilian nuclear shipping has a future beyond state owned icebreakers and military auxiliaries, it is likely to resemble a narrow corridor rather than a broad transition. One plausible configuration involves very large vessels powered by tried and tested marine PWRs operating between a small number of dedicated ports, with specialized crews, standardized regulatory frameworks, and predictable routes. In that sense, nuclear shipping begins to resemble a hub and spoke model, not unlike the Airbus A380 concept in aviation. The A380 was optimized for high volume routes between major hubs, trading flexibility for efficiency at scale. Its failure in passenger aviation reflected the rise of point to point travel and the premium placed on operational flexibility rather than pure capacity. Shipping differs in important ways. Cargo is less sensitive to frequency, and ports already function as aggregation nodes. But the structural lesson remains. Platforms optimized for extreme scale succeed only where traffic density, infrastructure, and demand stability align. This leaves open the possibility that ultra large crude carriers or container ships operating on fixed routes between energy or resource hubs could justify nuclear propulsion under extreme decarbonization pressure. Even then, success would depend on unusually stable demand, supportive regulation, and some degree of state backed risk absorption. Cost, Complexity, and the Persistent Constraint Nuclear propulsion at sea has always been constrained by the same forces. It adds complexity to vessels designed to minimize it. It introduces regulatory and political risk into industries that operate on thin margins. It solves problems that become decisive only in extreme operational environments. Decarbonization pressure increases its appeal, but it does not transform its economics. The history of nuclear shipping suggests not impossibility, but selectivity. Nuclear propulsion thrives where its advantages overwhelm its burdens. Everywhere else, it remains a solution in search of a problem large enough to justify it. That reality has not changed, even as the climate imperative has waxed and waned. This essay is based on an interview with Nick Touran. YouTube interview with @whatisnuclear in link below.

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John E Parsons
John E Parsons@WildeEcon·
@fredstaffordcs The Vistra purchases sound like they are plain vanilla PPAs and not behind the meter. Standard for all industrial customers in Vistra's region. The Oklo and TerraPower deals sound like they are a variation on VC investments marketed to the press as power purchases.
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Fred Stafford
Fred Stafford@fredstaffordcs·
As more giant industrial customers look to self supply behind the meter, will we see further departure from large power facilities that come with economies of scale? Why empower an entity like a public utility to build and operate them when customers can do the generator investment themselves and therefore choose projects sized for their own needs only?
Fred Stafford@fredstaffordcs

@JaneAFlegal @JosephMajkut It's nice to see but a reminder of how insane it is that we are letting the only proven advanced nuclear reactor design, AP1000, with all of its economies of scale as a large reactor, simply die on the vine because Big Tech wants to place their chips on unlicensed tech instead.

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John E Parsons
John E Parsons@WildeEcon·
@fredstaffordcs I agree this is a major oversight. The cost problem is a systemic problem that needs to be tackled. A national program is the right vehicle, but only produces a solution if it is crafted to tackle the cost problem.
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Fred Stafford
Fred Stafford@fredstaffordcs·
Second, there's no confrontation with $ cost of all this. Of course it will lead to cheaper projects over time. But how do you sell the public on bankrolling it? How do you create the political will for the public expenditure? Especially if any climate justification is out. 7/
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Fred Stafford
Fred Stafford@fredstaffordcs·
Very interesting essay. "Nuclear energy is not just one option among many within a diversified clean energy portfolio; it is strategic sovereign infrastructure, analogous to missile defense, civil aviation control, or central banking. ..." 1/
American Affairs@AmericanAffrs

“As long as we continue to frame nuclear deployment as a mar­ket‑based policy challenge, we will remain frozen—not because of bad actors, but because the logic of the frame itself cannot produce motion,” writes John Arden. americanaffairsjournal.org/2025/11/the-so…

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John E Parsons
John E Parsons@WildeEcon·
@brian_callaci I'ts not just a question of efficiency and deadweight loss, but also about dividing the pie. It reduces consumer surplus and increases producer surplus.
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Brian Callaci
Brian Callaci@brian_callaci·
In labor markets, a bedrock trade union demand is "equal pay for equal work." But in monopsonized labor markets, this demand creates inefficiency and deadweight loss. I have a PhD in econoomics but I believe in equal pay for equal work. Why am I wrong?
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Brian Callaci
Brian Callaci@brian_callaci·
I think this is a great conversation for economists to have. Economists are trained to see this as "everyone pays their reservation price, and the integral under the demand curve got bigger. What's the problem?" and most people (me included) see a moral problem. Why?
Lindsay Owens@owenslindsay1

Right now, Instacart is quietly running experiments on millions of us while we shop for groceries online. They are trying to figure out exactly how much they can get away with charging you for breakfast cereal, lunch meat, pasta, and everything in between. How do I know? 1/9

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John E Parsons
John E Parsons@WildeEcon·
@fredstaffordcs First, what I see in their chart is a real correlation. Second, they are using retail tariffs for industrial customers, claiming that's a proxy for wholesale prices, which it's not. And wholesale prices are easy to download, so what gives.
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Fred Stafford
Fred Stafford@fredstaffordcs·
The report presents data to justify their argument that changes in gas fuel costs paid by NY generators do not meaningfully affect retail industrial power prices. So what gives? ieefa.org/sites/default/…
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Nuclear Hazelnut 👷🏻‍♀️
Nuclear Hazelnut 👷🏻‍♀️@NuclearHazelnut·
Always excited to spotlight energy trends! In this clip, they dig into global nuclear reactor construction. Fun fact: there are about 70 reactors under construction worldwide, but NONE in the U.S. Why is that?👇
Kite & Key Media@kiteandkeymedia

There are about 70 nuclear reactors under construction around the world. The number in the U.S.? 0. Why? Our new video explores America’s on-again off-again love affair with nuclear energy.

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John E Parsons
John E Parsons@WildeEcon·
@noahqk @SeanCasten Checkout Norway’s decisions to cancel one proposed interconnect, and possibly to not renew others.
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Noah Kaufman
Noah Kaufman@noahqk·
@SeanCasten Sure but couldn’t a similar argument be used to oppose new transmission lines?
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Sean Casten
Sean Casten@SeanCasten·
This was completely predictable. As I’ve been noting for several years, if you build LNG terminals you will increase domestic natural gas prices. It is designed to shift wealth from US energy consumers to gas producers - and it’s working.
Sean Casten tweet media
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Ben Beattie
Ben Beattie@EnergyWrapAU·
Intermittent sources cause price volatility. Price volatility is bad for consumers. It doesn’t matter where, the result is the same.
Ben Beattie tweet mediaBen Beattie tweet media
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