A Comparison of the Effects of the Chernobyl and Three Mile Island Nuclear Accidents on the U.S. Electric Utility Industry

İsmail Aktar

Sosyoekonomi Journal, 2005, issue 2005-2

Abstract: We examined the stock market reaction to two nuclear accidents, the Three Mile Island incident and the Chernobyl disaster. We were interested in determining whether the negative stock market reaction following these events was consistently related to the level of nuclear exposure by each firm and whether the negative reaction was reasonably linked to human safety concerns. Prior research has shown that following TMI, but anomalously not Chernobyl, firms with the more nuclear capacity experienced larger stock price declines. Moreover, the link of safety to stock market reaction has not been investigated for either accident. Firms with higher nuclear exposure and already in trouble with NRC lost more than others in stock market. Likewise, firms having nuclear reactors close to populated cities lost more in stock market.

Keywords: Event Study; Nuclear Accidents; Electric Utility Stocks. (search for similar items in EconPapers)
JEL-codes: D23 E44 G14 (search for similar items in EconPapers)
Date: 2005
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