Bainbridge has a novel thought:

The Navy already operates dozens of small nuclear reactors in aircraft carriers and submarines, with an outstanding record of safety and reliability. They have an established training program that churns out nuclear-capable officers.

By analogy to the Army Corps of Engineering, we could create a Navy Corps of Nuclear Engineering. It would build and operate dozens of small nuclear power plants around the country.

To address security concerns, the first plants would be built on military bases, where the garrison can provide security. Licensing costs would be cut because the government would own and operate the plants.

The proposal should not offend small government sensibilities. Nuclear power is rife with market failures (and government failures). Huge research and development costs associated with traditional large scale nuclear power plants may be beyond the ability of private firms to finance. In addition, we know that private firms tend to underproduce the sort of basic R&D necessary to develop new generations of power plants. But the Navy already spends money to develop new naval reactors, which presumably could be scaled up at reasonable costs. Since the Navy need not worry about earning market competitive rates of return on its investment in R&D, moreover, there's no economic disincentive to conducting that sort of R&D in the Navy.

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