Optimal nuclear liability insurance

Alexis Louaas and Pierre Picard

Working Papers from HAL

Abstract: We analyze the insurance of nuclear liability risk, from theoretical and applied standpoints. Firstly, we characterize the optimal insurance scheme for a low-probability industrial accident, such as a nuclear catastrophe, in a model of collective risk-sharing. Using catastrophe bond data, we then evaluate the cost of capital sustaining such an insurance mechanism. Finally, we characterize the individual lotteries associated with the risk of a nuclear accident in France, and we estimate the optimal coverage. We conclude that the corporate liability limit currently in force is likely to be inferior to the socially optimal level.

Date: 2019-01-28
New Economics Papers: this item is included in nep-ias and nep-rmg
Note: View the original document on HAL open archive server: https://hal.science/hal-01996648v1
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://hal.science/hal-01996648v1/document (application/pdf)

Related works:
Journal Article: Optimal Nuclear Liability Insurance (2022)
Journal Article: Optimal Nuclear Liability Insurance (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-01996648

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().