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
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Related works:
Journal Article: Optimal Nuclear Liability Insurance (2022) 
Journal Article: Optimal Nuclear Liability Insurance (2022) 
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