The Trillion Dollar Costs of A Nuclear Catastrophe:Enough to Bankrupt an Entire National Economy…
by Washington’s Blog
April 21, 2011
Preface: I am not against all nuclear power, solely the unsafe type we have today. Future designs – like thorium reactors (see this and this) – may be a different animal altogether.
AP has a good article (via the Washington Post) on nuclear power economics:
Nuclear power is a viable source for cheap energy only if it goes uninsured.
Governments that use nuclear energy are torn between the benefit of low-cost electricity and the risk of a nuclear catastrophe, which could total trillions of dollars and even bankrupt a country.
The bottom line is that it’s a gamble: Governments are hoping to dodge a one-off disaster while they accumulate small gains over the long-term.
The cost of a worst-case nuclear accident at a plant in Germany, for example, has been estimated to total as much as €7.6 trillion ($11 trillion), while the mandatory reactor insurance is only €2.5 billion.
“The €2.5 billion will be just enough to buy the stamps for the letters of condolence,” said Olav Hohmeyer, an economist at the University of Flensburg who is also a member of the German government’s environmental advisory body.
The situation in the U.S., Japan, China, France and other countries is similar.
“Around the globe, nuclear risks — be it damages to power plants or the liability risks resulting from radiation accidents — are covered by the state. The private insurance industry is barely liable,” said Torsten Jeworrek, a board member at Munich Re, one of the world’s biggest reinsurance companies.