Compensating Nuclear Damage in China

Abstract

Increasingly, China is planning to move to nuclear power. The plan for China is to double its nuclear capacity in the near future. A critical component is that a regulatory framework has to be developed to accompany this move towards nuclear energy. An important component of such a framework is a nuclear liability regime. In this article, the Chinese compensation regulatory regime for nuclear accidents is addressed. Part II of the article provides a short history of China’s nuclear policy and its existing nuclear energy regulatory framework. Part III discusses the legislative framework for liability and the effectiveness of two government documents. Part IV discusses in more details the rules regarding nuclear liability in China. Part V provides a critical evaluation and comparison of the nuclear liability framework in China, contrasting it to some nuclear liability economic starting points and to the nuclear liability regime and the US Price-Anderson Act and international conventions.

Keywords: nuclear liability, nuclear insurance, Price Anderson Act, nuclear liability conventions, nuclear energy, China, nuclear accidents, financial security, channelling, strict liability, environmental damage, nuclear damage

JEL Classification: K32, K41, K13, K23, K33