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SUBSIDY TO NUCLEAR POWER THROUGH PRICE‐ANDERSON LIABILITY LIMIT: COMMENT
Author(s) -
HEYES ANTHONY G.,
LISTONHEYES CATHERINE
Publication year - 1998
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.1998.tb00506.x
Subject(s) - limit (mathematics) , subsidy , economics , liability , value (mathematics) , actuarial science , financial economics , finance , market economy , mathematics , mathematical analysis , statistics
Dubin and Rothwell (1990) use details of insurance premiums to develop a methodology for inferring the value to nuclear operators of the Price‐Anderson liability limit from but misinterpret the terms of the insurance contracts for which the premiums are paid. This leads them to overstate the subsidy due to the limit by a factor of between four and ten.