On the Performance of the United States Nuclear Power Sector: A Bayesian Approach

Abstract

In this paper we pursue a novel application of Bayesian empirical likelihood methods to estimate the canonical stochastic frontier model. We utilize this new framework to study technical efficiency, scale economies and technological change in the United States nuclear energy generation sector. We find decreasing scale economies, a fact consistent with the recent decline of the industry. Our results suggest that micro nuclear reactors may benefit the sector as a whole.

Keywords: Nuclear energy, Returns to Scale, Exponential Tilting, Asymmetric Laplace, Empirical Likelihood