Uranium and nuclear power: The role of exploration information in framing public policy

As the importance of addressing climate change increases the future global role for nuclear power, the demand for uranium will increase. Expanded uranium reserves will be needed to meet this increased demand, highlighting the importance of future exploratory efforts. To shed light on the social desirability of future exploration levels I analyze a past expansionary period in the U.S. uranium industry. I find exploration levels were smaller than socially efficient during this period, resulting from a deviation between the private and social values of information. Looking forward, public policies can encourage optimal exploration levels by addressing this deviation.