An Economic Analysis of the Nuclear Liability Subsidy
33 Pages Posted: 10 Nov 2009
Date Written: October 10, 2009
This paper deals with liability for nuclear accidents and analyses the international liability regime from an economic perspective. It is argued that the international legal regime provides an implicit subsidy to the nuclear operator by putting a financial cap on liability. It is equally argued that the same effect does not occur under the Price-Anderson Act. The nuclear subsidy awarded under the international regime is calculated and the economic consequences of the liability subsidy are discussed. It is argued that the subsidy leads to an artificial competitiveness of nuclear energy and potentially to a lack of compensation.
Keywords: nuclear liability, nuclear energy, Price Anderson Act, Euratom channelling, limitation on liability
JEL Classification: K13, K32
Suggested Citation: Suggested Citation