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Splitting nuclear parks or not? The third party liability role

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  • Mondello, Gérard

Abstract

This paper studies how the combination of strict liability regime, a stringent control from regulatory agencies and insurance companies could help in defining the highest prevention level concerning ultra-hazardous industries. It presents a model extended from two to n nuclear power stations and shows that the institutional conditions (cap on operator's liability and insurance compensation) play a fundamental role in inducing whether or not to centralize the management of a nuclear park. It reaches conclusive results in defining the critical ratios that induce either a centralized or a decentralized management.

Suggested Citation

  • Mondello, Gérard, 2015. "Splitting nuclear parks or not? The third party liability role," Energy Economics, Elsevier, vol. 51(C), pages 553-559.
    • Handle: RePEc:eee:eneeco:v:51:y:2015:i:c:p:553-559
    DOI: 10.1016/j.eneco.2015.08.016
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    More about this item

    Keywords

    Strict liability; Electric energy; Nuclear plants; Limited liability; Concentration;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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