Economic Management of Future Nuclear Accidents

Book chapter, 2019

Nuclear core melts with large emissions of radioactive substances are not paid for by nuclear power companies but by the victims and by taxpayers. This subsidy is often the result of legislation with that purpose.

Experience shows that the relative frequency of such accidents is several orders of magnitude larger that the risk estimates publicised by the nuclear industry and nuclear proponents.

This chapter describes the how the problem was created in order to make the nuclear development economically possible. In the end, it is described how amarket may be created based on compulsory paying capacity, possibly provided via catastrophe bonds that would internalise many costs of accidents. At the same time, such regulations would provide a market evaluation, by responsible actors, of the nuclear risk costs.