Pacific Northwest National Laboratory and Los Alamos National Laboratory have produced a report that puts some facts and figures (not to mention charts and graphs) behind a point I’ve been making for some time now: that Iran’s explanation for its nuclear development program does not make economic sense (hat tip: Arms Control Wonk). As I mentioned before
- Iran can achieve energy independence more efficiently by using the natural gas vented off their oilheads than by generating electricity using nuclear power plants
- Iran doesn’t have enough indigenous uranium to fuel its plants for their life cycle
The report also makes several points that I haven’t seen made before:
One is that continued investment by Iran in front-end nuclear technology projects will represent a significant drain on capital resources available for other projects. We cannot accurately estimate the extent of this effect, but these projects compete for financial capital, brainpower, and political focus with the fossil energy and conservation projects described above. The recent proposal for an enrichment facility to be located in Russia, while a positive step from an economic perspective, will also demand capital to be realized. This investment competition problem can only be addressed by abandoning the unproductive investment in indigenous front-end fuel cycle facilities, and negotiating a cost-sharing arrangement with Russia that reflects the true costs of Russian enrichment operations and equitably shares the economics associated with this technology.
The second, more subtle, economic problem is that continuation of front-end fuel cycle facility investments will only sour the climate for foreign investment in Iranâ€™s energy economy, and for international commerce with Iran in general. Although this effect depends on perceptions and trust, it could be very important in the long run. The extent of international consensus evidenced in recent IAEA actions makes it clear that these facilities are perceived as motivated by an intent to acquire weapons. It has been observed that the strong perception of nuclear weapons intent for the nuclear program has â€œcreated an atmosphere of distrust in the region.â€ Pursuing even limited future research in these facilities would add to this atmosphere and clearly harm the prospects for productive economic collaboration and profitable projects. It is also likely to lead to economic sanctions, which would harm the Iranian economy to an even greater degree.
So, why is Iran pursuing an indigenous nuclear fuel cycle?
- They are developing nuclear weapons.
- They want to be in a position to develop nuclear weapons.
- They want people (including their own) to believe that they’re developing nuclear weapons.
- The prestige associated with nuclear power is greater than that of pursuing energy independence by the most economical means.
- There are other factors that we’re not aware of.
Any of the first three alternatives is not acceptable. As I mentioned in my last post on this subject, the perception that Iran is pursuing nuclear weapons is very nearly as destabilizing as Iran’s possession of nuclear weapons would be.
Or, it’s just possible that, contrary to what I’ve been maintaining, Iran’s regime is not rational.
I’m open to additional speculation. Feel free to contribute you own ideas.