IDEAS home Printed from https://ideas.repec.org/a/bla/coecpo/v8y1990i3p73-79.html
   My bibliography  Save this article

Subsidy To Nuclear Power Through Price‐Anderson Liability Limit

Author

Listed:
  • JEFFREY A. DUBIN
  • GEOFFREY S. ROTHWELL

Abstract

Between 1959 and 1982, the Price‐Anderson Act placed a limit of $560 million on the liability of nuclear power plant operators for accidental damages. This limit grew to $7 billion due to the 1988 amendments to the act. This paper using insurance premiums charged for the first $160 million of coverage and the Nuclear Regulatory Commission's estimate of the probability of a worst‐case loss, models the distribution of damages with a log‐logistic density function. The study finds that the value of the Price‐Anderson subsidy was $60 million per reactor year before 1982 but then dropped to $22 million per reactor year following the 1988 amendments.

Suggested Citation

  • Jeffrey A. Dubin & Geoffrey S. Rothwell, 1990. "Subsidy To Nuclear Power Through Price‐Anderson Liability Limit," Contemporary Economic Policy, Western Economic Association International, vol. 8(3), pages 73-79, July.
    • Handle: RePEc:bla:coecpo:v:8:y:1990:i:3:p:73-79
    DOI: 10.1111/j.1465-7287.1990.tb00645.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1465-7287.1990.tb00645.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1465-7287.1990.tb00645.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Dubin, Jeffrey A. & Rothwell, Geoffrey S., 1989. "Risk and reactor safety systems adoption," Journal of Econometrics, Elsevier, vol. 42(2), pages 201-218, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Heyes, Anthony & Heyes, Catherine, 2000. "An empirical analysis of the Nuclear Liability Act (1970) in Canada," Resource and Energy Economics, Elsevier, vol. 22(1), pages 91-101, January.
    2. Heffron, Raphael J., 2013. "Nuclear new build in the United States 1990–2010: A three state analysis," Technological Forecasting and Social Change, Elsevier, vol. 80(5), pages 876-892.
    3. Mondello, Gérard, 2015. "Splitting nuclear parks or not? The third party liability role," Energy Economics, Elsevier, vol. 51(C), pages 553-559.
    4. Krupnick, Alan J. & Burtraw, Dallas, 1996. "The social costs of electricity: Do the numbers add up?," Resource and Energy Economics, Elsevier, vol. 18(4), pages 423-466, December.
    5. Rust, John & Rothwell, Geoffrey, 1995. "Optimal Response to a Shift in Regulatory Regime: The Case of the US Nuclear Power Industry," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(S), pages 75-118, Suppl. De.
    6. Michael Faure & Karine Fiore, 2008. "The civil liability of European nuclear operators: which coverage for the new 2004 Protocols? Evidence from France," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 8(3), pages 227-248, September.
    7. Joshua Pearce, 2009. "Increasing PV Velocity by Reinvesting the Nuclear Energy Insurance Subsidy into Large Scale Solar Photovoltaic Production," Post-Print hal-02120510, HAL.
    8. Trebilcock, Michael & Winter, Ralph A., 1997. "The economics of nuclear accident law," International Review of Law and Economics, Elsevier, vol. 17(2), pages 215-243, June.
    9. Zelenika-Zovko, I. & Pearce, J.M., 2011. "Diverting indirect subsidies from the nuclear industry to the photovoltaic industry: Energy and financial returns," Energy Policy, Elsevier, vol. 39(5), pages 2626-2632, May.
    10. Anthony G. Heyes & Catherine Liston‐Heyes, 1998. "Subsidy To Nuclear Power Through Price‐Anderson Liability Limit: Comment," Contemporary Economic Policy, Western Economic Association International, vol. 16(1), pages 122-124, January.
    11. Ahmad, Ali & Ramana, M.V., 2014. "Too costly to matter: Economics of nuclear power for Saudi Arabia," Energy, Elsevier, vol. 69(C), pages 682-694.
    12. Anthony Heyes, 2009. "Is environmental regulation bad for competition? A survey," Journal of Regulatory Economics, Springer, vol. 36(1), pages 1-28, August.
    13. Pfenninger, Stefan & Keirstead, James, 2015. "Comparing concentrating solar and nuclear power as baseload providers using the example of South Africa," Energy, Elsevier, vol. 87(C), pages 303-314.
    14. Mark Starik & Mark Heuer, 2002. "Strategic inter‐organizational environmentalism in the US: A multi‐sectoral perspective of alternating eco‐policy roles," Business Strategy and the Environment, Wiley Blackwell, vol. 11(4), pages 221-235, July.
    15. Darwin C. Hall, 1990. "Preliminary Estimates Of Cumulative Private And External Costs Of Energy," Contemporary Economic Policy, Western Economic Association International, vol. 8(3), pages 283-307, July.
    16. Michael Faure & Karine Fiore, 2005. "An Economic Analysis of the French Nuclear Liability Subsidy," CAE Working Papers 35, Aix-Marseille Université, CERGAM.
    17. John J. Laureto & Joshua M. Pearce, 2016. "Nuclear Insurance Subsidies Cost from Post-Fukushima Accounting Based on Media Sources," Sustainability, MDPI, vol. 8(12), pages 1-16, December.
    18. Joshua M. Pearce, 2012. "Limitations of Nuclear Power as a Sustainable Energy Source," Sustainability, MDPI, vol. 4(6), pages 1-15, June.
    19. McDonald, N.C. & Pearce, J.M., 2010. "Producer responsibility and recycling solar photovoltaic modules," Energy Policy, Elsevier, vol. 38(11), pages 7041-7047, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Trebilcock, Michael & Winter, Ralph A., 1997. "The economics of nuclear accident law," International Review of Law and Economics, Elsevier, vol. 17(2), pages 215-243, June.
    2. Geoffrey S. Rothwell, 1989. "Stock Market Reaction To Nuclear Reactor Failures," Contemporary Economic Policy, Western Economic Association International, vol. 7(3), pages 96-106, July.
    3. Michael Faure & Karine Fiore, 2005. "An Economic Analysis of the French Nuclear Liability Subsidy," CAE Working Papers 35, Aix-Marseille Université, CERGAM.
    4. Michael Faure & Karine Fiore, 2008. "The civil liability of European nuclear operators: which coverage for the new 2004 Protocols? Evidence from France," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 8(3), pages 227-248, September.
    5. Geoffrey Rothwell & John Rust, 1995. "A Dynamic Programming Model of U.S. Nuclear Power Plant Operations," Microeconomics 9502001, University Library of Munich, Germany, revised 06 Feb 1995.
    6. Rust, John & Rothwell, Geoffrey, 1995. "Optimal Response to a Shift in Regulatory Regime: The Case of the US Nuclear Power Industry," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(S), pages 75-118, Suppl. De.
    7. Heyes, Anthony & Heyes, Catherine, 2000. "An empirical analysis of the Nuclear Liability Act (1970) in Canada," Resource and Energy Economics, Elsevier, vol. 22(1), pages 91-101, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:coecpo:v:8:y:1990:i:3:p:73-79. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/weaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.