Early Decommissioning of Nuclear Power Plants: Is There an Economic Rationale?

France's recently passed Energy Transition Law limits the total installed capacity of nuclear power, which will force France's principal operator, EDF, to shut down two plants by 2017. Is there an economic rationale for government-induced early retirement of nuclear plants? An analysis of German and Belgian post-Fukushima-Daiichi policies suggests that energy policies can be myopic, with a tendency to put too much emphasis on short-term interests.