Berkeley economists reevaluate Diablo Canyon closure costs

In 2016, when the news that the Diablo Canyon nuclear power plant would close, many in the surrounding communities panicked. Suddenly, the future of San Luis Obispo county looked uncertain.

For roughly 50 years, the region has relied on the plant for high paying jobs and tax revenues from its operation have helped support local schools and other government programs. The initial estimates were that the San Luis Obispo area would lose about $1 billion a year for several years following the closure.

However, a new study out by a team of UC Berkeley economists says the negative economic impacts of the closure could be much less than previously predicted.