An Economic Analysis of the Nuclear Liability Subsidy

This paper deals with liability for nuclear accidents and analyses the international liability regime from an economic perspective. It is argued that the international legal regime provides an implicit subsidy to the nuclear operator by putting a financial cap on liability. It is equally argued that the same effect does not occur under the Price-Anderson Act. The nuclear subsidy awarded under the international regime is calculated and the economic consequences of the liability subsidy are discussed. It is argued that the subsidy leads to an artificial competitiveness of nuclear energy and potentially to a lack of compensation