回到这一题上来，这一题是让我们从external costs的角度来分析nuclear power is over-produced or under-provided.并且题中明确要求用diagram，因此我们需要在答案中画出准确的图像并对其进行解释。
1. relevant knowledge about external cost with diagrams+ possible reasons analysis related to Extract C
2. Taking the external cost as well as Extracts into consideration, to confirm whether it is over-produced or under-produced and further discuss the possible cause and impacts
3. Further conclusion
■ Part 1 relevant knowledge of external cost
Firstly you have to explain the definition of external costs as well as draw a correct and clear diagram. Make sure that every elements should be included especially the welfare loss.
Secondly, you have to employ analysis of the external cost of nuclear power according to the Extracts. For example:
• Risk of nuclear accident – local schools and businesses close, impact on property prices.
• High doses of nuclear radiation leaks increase the risk of cancer – loss of family income, employment, contribution to local economy, costs to NHS.
• Cost of storage for future generations – opportunity cost of resources (land) tied to this, resulting in loss of income to farmers for example.
• Opportunity cost of subsidies to nuclear industry, subsidy cuts to solar businesses.
■ Part2 Discuss whether it is over or under produced
In this part you have to take both its own external cost as well as its substitutes into consideration as mentioned in the extracts. An pay attention to both breadth and depth of your analysis.
For its external cost, it may be over-produced, but for the costs of its substitutes, it may be under-produced. You have to analyse both according to the Extracts.
Taking the costs of substitutes as an example:
Reduced external costs in production of substitutes/external benefits may mean it is under-produced:
• Curb greenhouse gas emissions which are causing climate change, by using nuclear, resulting in less flooding or storm damage reducing insurance costs to businesses. Extract C
• Building new nuclear reactors allow positive local economic effects from job creation.
• Provide ‘affordable energy’ helping businesses stay open thus protecting jobs and ending fuel poverty resulting in lower demands for health care.Other evaluation points might include:
• Magnitude – depends on relative size of external cost.
• Measurement difficult – putting a value on external costs.
• Energy efficiency measures more preferable.
• Short term/long term costs and benefits.
Part 3 Further Conclusion
You have to make a deep conclusion according to or your analysis above to make your essay more organized and considered.