Optimal Nuclear Liability Insurance

Alexis Louaas and Pierre Picard
Authors registered in the RePEc Author Service: Pierre Picard

The Energy Journal, 2022, vol. Volume 43, issue Number 1

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, when liability is shared between the firm and the State. 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 liability limit currently in force is likely to be inferior to the socially optimal level.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.iaee.org/en/publications/ejarticle.aspx?id=3778 (text/html)
Access to full text is restricted to IAEE members and subscribers.

Related works:
Journal Article: Optimal Nuclear Liability Insurance (2022)
Working Paper: Optimal nuclear liability insurance (2019)
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:aen:journl:ej43-1-picar

Ordering information: This journal article can be ordered from
http://www.iaee.org/en/publications/ejsearch.aspx

Access Statistics for this article

More articles in The Energy Journal from International Association for Energy Economics Contact information at EDIRC.
Bibliographic data for series maintained by David Williams ().