Skip to main content
SpringerLink
Log in

Determining the Optimal Financial Strategies for Nuclear Energy Companies

  • Chapter
  • First Online:
Financial Strategies in Competitive Markets

Part of the book series: Contributions to Finance and Accounting ((CFA))

Abstract

The aim of this study is to identify the most optimal financial strategies required for nuclear energy investments. In this context, the studies in the literature are examined in detail and 6 different financial strategies are determined. After that, these strategies are weighted with the help of the DEMATEL method. The findings indicate that the commodity price risk is the most appropriate financial strategy for the nuclear energy investors. Similarly, these companies should also give importance to the currency exchange rate and interest rate risks. On the other hand, it is also concluded that debt financing, equity financing and crowdfunding play a lower important role in this regard. It can be said that nuclear energy companies should mainly focus on the volatility of the commodity prices. In nuclear reactors, some commodities are very crucial, such as uranium and boron. Hence, to provide sustainable financial improvement, the price volatility of these products should be minimized. For this purpose, the investors should use financial derivatives to hedge these prices.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 149.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 199.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 199.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Aalto P, Nyyssönen H, Kojo M, Pal P (2017) Russian nuclear energy diplomacy in Finland and Hungary. Eurasian Geogr Econ 58(4):386–417

    Article  Google Scholar 

  • Ağbulut Ü (2019) Turkey’s electricity generation problem and nuclear energy policy. Energy Sources A Recov Util Environ Eff 41(18):2281–2298

    Article  Google Scholar 

  • AlFarra HJ, Abu-Hijleh B (2012) The potential role of nuclear energy in mitigating CO2 emissions in the United Arab Emirates. Energy Policy 42:272–285

    Article  Google Scholar 

  • Apergis N, Payne JE (2010) A panel study of nuclear energy consumption and economic growth. Energy Econ 32(3):545–549

    Article  Google Scholar 

  • Aydın Cİ (2020) Nuclear energy debate in Turkey: stakeholders, policy alternatives, and governance issues. Energy Policy 136:111041

    Article  Google Scholar 

  • Bedenko SV, Ghal-Eh N, Lutsik IO, Shamanin IV (2019) A fuel for generation IV nuclear energy system: isotopic composition and radiation characteristics. Appl Radiat Isot 147:189–196

    Article  Google Scholar 

  • Berdahl L, Bourassa M, Bell S, Fried J (2016) Exploring perceptions of credible science among policy stakeholder groups: results of focus group discussions about nuclear energy. Sci Commun 38(3):382–406

    Article  Google Scholar 

  • Bodde DL (1998) Strategic thinking about nuclear energy: implications of the emerging market structure in electric generation. Energy Policy 26(12):957–962

    Article  Google Scholar 

  • Buongiorno J, Parsons JE, Petti DA (2018) Should nuclear energy play a role in a carbon-constrained world? Atw Internationale Zeitschrift für Kernenergie 63:573–578

    Google Scholar 

  • Contu D, Mourato S (2020) Complementing choice experiment with contingent valuation data: individual preferences and views towards IV generation nuclear energy in the UK. Energy Policy 136:111032

    Article  Google Scholar 

  • Dalton D (2019) How governments can remove barriers to investment in nuclear energy. Atw. Internationale Zeitschrift fuer Kernenergie 64(10):452–453

    Google Scholar 

  • Dinçer H, Yüksel S (2018) Financial sector-based analysis of the G20 economies using the integrated decision-making approach with DEMATEL and TOPSIS. In: Emerging trends in banking and finance. Springer, Cham, pp 210–223

    Chapter  Google Scholar 

  • Dinçer H, Yüksel S, Martínez L (2019) Interval type 2-based hybrid fuzzy evaluation of financial services in E7 economies with DEMATEL-ANP and MOORA methods. Appl Soft Comput 79:186–202

    Article  Google Scholar 

  • Dong K, Sun R, Jiang H, Zeng X (2018) CO2 emissions, economic growth, and the environmental Kuznets curve in China: what roles can nuclear energy and renewable energy play? J Clean Prod 196:51–63

    Article  Google Scholar 

  • dos Santos RLP, Rosa LP, Arouca MC, Ribeiro AED (2013) The importance of nuclear energy for the expansion of Brazil’s electricity grid. Energy Policy 60:284–289

    Article  Google Scholar 

  • Espluga Trenc J, Medina B, Presas A, Rubio-Varas M, De la Torre J (2017) The social dimensions of the perception of nuclear energy. An analysis of the Spanish case (1960–2015). Revista Internacional De Sociologia 75(4)

    Google Scholar 

  • Esposto S (2008) The possible role of nuclear energy in Italy. Energy Policy 36(5):1584–1588

    Article  Google Scholar 

  • Gagarinskiy AY (2018) Russian nuclear energy technologies for the development of the Arctic. Atw Internationale Zeitschrift fuer Kernenergie 63(3):149–152

    Google Scholar 

  • Gao R, Nam HO, Jang H, Ko WI (2019) The economic competitiveness of promising nuclear energy system: a closer look at the input uncertainties in LCOE analysis. Int J Energy Res 43(9):3928–3958

    Article  Google Scholar 

  • Geng L, Liu T, Zhou K, Yang G (2018) Can power affect environmental risk attitude toward nuclear energy? Energy Policy 113:87–93

    Article  Google Scholar 

  • Gozgor G, Demir E (2017) Evaluating the efficiency of nuclear energy policies: an empirical examination for 26 countries. Environ Sci Pollut Res 24(22):18596–18604

    Article  Google Scholar 

  • Gralla F, John B, Abson DJ, Møller AP, Bickel M, Lang DJ, von Wehrden H (2016) The role of sustainability in nuclear energy plans—What do national energy strategies tell us? Energy Res Soc Sci 22:94–106

    Article  Google Scholar 

  • Gupta K, Nowlin MC, Ripberger JT, Jenkins-Smith HC, Silva CL (2019) Tracking the nuclear ‘mood’in the United States: introducing a long term measure of public opinion about nuclear energy using aggregate survey data. Energy Policy 133:110888

    Article  Google Scholar 

  • Heffron RJ (2013) Nuclear energy policy in the United States 1990–2010: a federal or state responsibility? Energy Policy 62:254–266

    Article  Google Scholar 

  • Heidrich B, Pimblott SM, Was GS, Zinkle S (2019) Roadmap for the application of ion beam technologies to the challenges of nuclear energy technologies. Nucl Instrum Methods Phys Res, Sect B 441:41–45

    Article  Google Scholar 

  • Ho SS, Looi J, Chuah AS, Leong AD, Pang N (2018) “I can live with nuclear energy if…”: exploring public perceptions of nuclear energy in Singapore. Energy Policy 120:436–447

    Article  Google Scholar 

  • Huhtala A, Remes P (2017) Quantifying the social costs of nuclear energy: perceived risk of accident at nuclear power plants. Energy Policy 105:320–331

    Article  Google Scholar 

  • Jensen-Eriksen N (2020) Looking for cheap and abundant power: business, government and nuclear energy in Finland. Bus Hist, 1–22

    Google Scholar 

  • Jun E, Kim WJ, Jeong YH, Chang SH (2010) Measuring the social value of nuclear energy using contingent valuation methodology. Energy Policy 38(3):1470–1476

    Article  Google Scholar 

  • Jun Q, Dinçer H, Yüksel S (2021) Stochastic hybrid decision-making based on interval type 2 fuzzy sets for measuring the innovation capacities of financial institutions. Int J Financ Econ 26:573–593

    Article  Google Scholar 

  • Kessides IN (2014) Powering Africa’s sustainable development: the potential role of nuclear energy. Energy Policy 74:S57–S70

    Article  Google Scholar 

  • Kim SC (2017) Endangering alliance or risking proliferation?: US–Japan and US–Korea nuclear energy cooperation agreements. Pac Rev 30(5):692–709

    Article  Google Scholar 

  • Kim S (2020) The effects of foreign direct investment, economic growth, industrial structure, renewable and nuclear energy, and urbanization on Korean greenhouse gas emissions. Sustainability 12(4):1625

    Article  Google Scholar 

  • Kim H, Jeon EC (2020) Structural changes to nuclear energy industries and the economic effects resulting from energy transition policies in South Korea. Energies 13(7):1806

    Article  Google Scholar 

  • Kok B, Benli H (2017) Energy diversity and nuclear energy for sustainable development in Turkey. Renew Energy 111:870–877

    Article  Google Scholar 

  • Korsakienė R, Raišienė AG, Dinçer H, Yüksel S, Aleksejevec V (2020) Strategic mapping of eco-innovations and human factors: business projects’ success revisited. In: Strategic outlook for innovative work behaviours. Springer, Cham, pp 1–19

    Google Scholar 

  • Krane J, Jaffe AM, Elass J (2016) Nuclear energy in the Middle East: Chimera or solution? Bull At Sci 72(1):44–51

    Article  Google Scholar 

  • Kratochvíl P, Mišík M (2020) Bad external actors and good nuclear energy: media discourse on energy supplies in the Czech Republic and Slovakia. Energy Policy 136:111058

    Article  Google Scholar 

  • Kunsch PL, Friesewinkel J (2014) Nuclear energy policy in Belgium after Fukushima. Energy Policy 66:462–474

    Article  Google Scholar 

  • Lau LS, Choong CK, Ng CF, Liew FM, Ching SL (2019) Is nuclear energy clean? Revisit of Environmental Kuznets Curve hypothesis in OECD countries. Econ Model 77:12–20

    Article  Google Scholar 

  • Lee CC, Chiu YB (2011) Oil prices, nuclear energy consumption, and economic growth: new evidence using a heterogeneous panel analysis. Energy Policy 39(4):2111–2120

    Article  Google Scholar 

  • Li X, Zhu S, Yüksel S, Dinçer H, Ubay GG (2020) Kano-based mapping of innovation strategies for renewable energy alternatives using hybrid interval type-2 fuzzy decision-making approach. Energy 211:118679

    Article  Google Scholar 

  • Lopatta K, Kaspereit T (2014) The cross-section of returns, benchmark model parameters, and idiosyncratic volatility of nuclear energy firms after Fukushima Daiichi. Energy Econ 41:125–136

    Article  Google Scholar 

  • Luqman M, Ahmad N, Bakhsh K (2019) Nuclear energy, renewable energy and economic growth in Pakistan: evidence from non-linear autoregressive distributed lag model. Renew Energy 139:1299–1309

    Article  Google Scholar 

  • Markard J, Bento N, Kittner N, Nunez-Jimenez A (2020) Destined for decline? Examining nuclear energy from a technological innovation systems perspective. Energy Res Soc Sci 67:101512

    Article  Google Scholar 

  • Mauger R (2018) Forced nuclear energy reactors shutdown in France: the Energy Transition Act’s mechanisms. J World Energy Law Bus 11(3):270–281

    Article  Google Scholar 

  • Melikoglu M (2016) The role of renewables and nuclear energy in Turkey’s Vision 2023 energy targets: economic and technical scrutiny. Renew Sust Energ Rev 62:1–12

    Article  Google Scholar 

  • Meng M, Yu J (2018) Chinese nuclear energy politics: viewpoint on energy. Energy Sources B Econ Plann Policy 13(1):72–75

    Article  Google Scholar 

  • Murakami K, Ida T, Tanaka M, Friedman L (2015) Consumers’ willingness to pay for renewable and nuclear energy: a comparative analysis between the US and Japan. Energy Econ 50:178–189

    Article  Google Scholar 

  • Nazlioglu S, Lebe F, Kayhan S (2011) Nuclear energy consumption and economic growth in OECD countries: cross-sectionally dependent heterogeneous panel causality analysis. Energy Policy 39(10):6615–6621

    Article  Google Scholar 

  • Nevinitsa VA, Teplov PS, Fomichenko PA, Gulevich AV, Dekusar VM, Egorov AF, … Farakshin MR (2020) Efficiency assessment of nuclear energy development scenarios for Russia using multi-criteria analysis. Atomic Energy 128(1)

    Google Scholar 

  • Ozmen SF (2020) Ecological assesment of Akkuyu nuclear power plant site marine sediments in terms of radionuclide and metal accumulation. J Radioanal Nucl Chem 325:133–145

    Article  Google Scholar 

  • Ozturk I (2017) Measuring the impact of alternative and nuclear energy consumption, carbon dioxide emissions and oil rents on specific growth factors in the panel of Latin American countries. Prog Nucl Energy 100:71–81

    Article  Google Scholar 

  • Piłatowska M, Geise A, Włodarczyk A (2020) The effect of renewable and nuclear energy consumption on decoupling economic growth from CO2 emissions in Spain. Energies 13(9):2124

    Article  Google Scholar 

  • Poinssot C, Bourg S, Boullis B (2016) Improving the nuclear energy sustainability by decreasing its environmental footprint. Guidelines from life cycle assessment simulations. Prog Nucl Energy 92:234–241

    Article  Google Scholar 

  • Prăvălie R, Bandoc G (2018) Nuclear energy: between global electricity demand, worldwide decarbonisation imperativeness, and planetary environmental implications. J Environ Manag 209:81–92

    Article  Google Scholar 

  • Prăvălie R, Bandoc G (2019) Response to “Regarding nuclear energy: between global electricity demand, worldwide decarbonisation imperativeness, and planetary environmental implications”. J Environ Manag 247:776–779

    Article  Google Scholar 

  • Qiu D, Dinçer H, Yüksel S, Ubay GG (2020) Multi-faceted analysis of systematic risk-based wind energy investment decisions in E7 economies using modified hybrid modeling with IT2 fuzzy sets. Energies 13(6):1423

    Article  Google Scholar 

  • Rabinowitz O (2016) Nuclear energy and desalination in Israel. Bull At Sci 72(1):32–38

    Article  Google Scholar 

  • Saidi K, Mbarek MB (2016) Nuclear energy, renewable energy, CO2 emissions, and economic growth for nine developed countries: evidence from panel Granger causality tests. Prog Nucl Energy 88:364–374

    Article  Google Scholar 

  • Sainati T, Locatelli G, Smith N (2019) Project financing in nuclear new build, why not? The legal and regulatory barriers. Energy Policy 129:111–119

    Article  Google Scholar 

  • Sarkodie SA, Adams S (2018) Renewable energy, nuclear energy, and environmental pollution: accounting for political institutional quality in South Africa. Sci Total Environ 643:1590–1601

    Article  Google Scholar 

  • Shepherd J (2018) Our planet will be the loser if we allow nuclear energy to ebb away. Atw Internationale Zeitschrift fuer Kernenergie 63(10):558

    Google Scholar 

  • Siqueira DS, de Almeida Meystre J, Hilário MQ, Rocha DHD, Menon GJ, da Silva RJ (2019) Current perspectives on nuclear energy as a global climate change mitigation option. Mitig Adapt Strateg Glob Chang 24(5):749–777

    Article  Google Scholar 

  • Tanaka S, Zabel J (2018) Valuing nuclear energy risk: evidence from the impact of the Fukushima crisis on US house prices. J Environ Econ Manag 88:411–426

    Article  Google Scholar 

  • Vainio A, Paloniemi R, Varho V (2017) Weighing the risks of nuclear energy and climate change: trust in different information sources, perceived risks, and willingness to pay for alternatives to nuclear power. Risk Anal 37(3):557–569

    Article  Google Scholar 

  • Wang S, Ha J, Kalkavan H, Yüksel S, Dinçer H (2020) IT2-based hybrid approach for sustainable economic equality: a case of E7 economies. SAGE Open 10(2):2158244020924434

    Article  Google Scholar 

  • Wolde-Rufael Y (2010) Bounds test approach to cointegration and causality between nuclear energy consumption and economic growth in India. Energy Policy 38(1):52–58

    Article  Google Scholar 

  • Yang L, Zhan W (2017) A closed nuclear energy system by accelerator-driven ceramic reactor and extend AIROX reprocessing. Sci China Technol Sci 60(11):1702–1706

    Article  Google Scholar 

  • Yildirim K, Gün M (2016) Public attitude to nuclear energy from climate change and energy security perspectives in Turkey. J Soc Adm Sci 3(2):141–160

    Google Scholar 

  • Yoo SH, Ku SJ (2009) Causal relationship between nuclear energy consumption and economic growth: a multi-country analysis. Energy Policy 37(5):1905–1913

    Article  Google Scholar 

  • Zawalińska K, Kinnunen J, Gradziuk P, Celińska-Janowicz D (2020) To whom should we grant a power plant? Economic effects of investment in nuclear energy in Poland. Energies 13(11):2687

    Article  Google Scholar 

  • Zhang F (2007) Does electricity restructuring work? Evidence from the US nuclear energy industry. J Ind Econ 55(3):397–418

    Article  Google Scholar 

  • Zhang G, Zhou S, Xia X, Yüksel S, Baş H, Dincer H (2020) Strategic mapping of youth unemployment with interval-valued intuitionistic hesitant fuzzy DEMATEL based on 2-tuple linguistic values. IEEE Access 8:25706–25721

    Article  Google Scholar 

  • Zhong J, Hu X, Yüksel S, Dincer H, Ubay GG (2020) Analyzing the investments strategies for renewable energies based on multi-criteria decision model. IEEE Access 8:118818–118840

    Article  Google Scholar 

  • Zhu L, Hu L, Yüksel S, Dinçer H, Karakuş H, Ubay GG (2020) Analysis of strategic directions in sustainable hydrogen investment decisions. Sustainability 12(11):4581

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. The School of Business, Istanbul Medipol University, Istanbul, Turkey

    Serhat Yüksel, Hasan Dinçer, Çağatay Çağlayan & Gülsüm Sena Uluer

Authors
  1. Serhat Yüksel
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Hasan Dinçer
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Çağatay Çağlayan
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Gülsüm Sena Uluer
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Serhat Yüksel .

Editor information

Editors and Affiliations

  1. School of Business and Management, Istanbul Medipol University, Istanbul, Turkey

    Hasan Dinçer

  2. Istanbul Medipol University, Istanbul, Turkey

    Serhat Yüksel

Rights and permissions

Reprints and permissions

Copyright information

© 2021 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Yüksel, S., Dinçer, H., Çağlayan, Ç., Uluer, G.S. (2021). Determining the Optimal Financial Strategies for Nuclear Energy Companies. In: Dinçer, H., Yüksel, S. (eds) Financial Strategies in Competitive Markets. Contributions to Finance and Accounting. Springer, Cham. https://doi.org/10.1007/978-3-030-68612-3_1

Download citation

Publish with us

Policies and ethics

Search

Navigation