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Divestiture of TEPCO for reparation for the Fukushima nuclear accident–A path to vertical unbundling

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  • Hosoe, Nobuhiro
  • Tanaka, Makoto

Abstract

The Fukushima Daiichi Nuclear Power Station held by Tokyo Electric Power Company (TEPCO) had a serious nuclear accident in March 2011. TEPCO's liability for the losses caused by this accident is speculated to reach several trillion yen. For this compensation, TEPCO is supposed to sell its assets, including those for its power business. Their sales are crucial for its solvency. We estimate the fundamental values of TEPCO's thermal plants by modeling their plant operation patterns based on spot market prices and fuel costs. Then, we discuss the implication of their divestiture for TEPCO's reparations in the context of the regulatory reforms as a radical path to unbundling, which has not yet been achieved due to the strong resistance from the incumbents.

Suggested Citation

  • Hosoe, Nobuhiro & Tanaka, Makoto, 2012. "Divestiture of TEPCO for reparation for the Fukushima nuclear accident–A path to vertical unbundling," Energy Policy, Elsevier, vol. 51(C), pages 207-212.
    • Handle: RePEc:eee:enepol:v:51:y:2012:i:c:p:207-212
    DOI: 10.1016/j.enpol.2012.09.013
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    References listed on IDEAS

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    1. Shu‐ichi Akiyama & Nobuhiro Hosoe, 2011. "A Spatial Equilibrium Analysis Of Japan'S Electric Power Network," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 23(2‐3), pages 114-136, July.
    2. Luenberger, David G., 1997. "Investment Science," OUP Catalogue, Oxford University Press, number 9780195108095.
    3. Tanaka, Makoto, 2009. "Transmission-constrained oligopoly in the Japanese electricity market," Energy Economics, Elsevier, vol. 31(5), pages 690-701, September.
    4. Paul L. Joskow & John E. Parsons, 2012. "The Future of Nuclear Power After Fukushima," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
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    Cited by:

    1. Toshiyuki Sueyoshi & Mika Goto, 2020. "Performance Assessment of Japanese Electric Power Industry: DEA Measurement with Future Impreciseness," Energies, MDPI, vol. 13(2), pages 1-24, January.
    2. Nobuhiro Hosoe, 2012. "Nuclear Power Plants Shutdown and Alternative Power Plants Installation–A Nine-region Spatial Equilibrium Analysis for the Electric Power Market in Japan," GRIPS Discussion Papers 12-11, National Graduate Institute for Policy Studies.
    3. GuiDeng Say & Gurneeta Vasudeva, 2020. "Learning from Digital Failures? The Effectiveness of Firms’ Divestiture and Management Turnover Responses to Data Breaches," Strategy Science, INFORMS, vol. 5(2), pages 117-142, June.

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