Distributing the Costs of Nuclear Core Melts

Abstract

The costs of managing the consequences of the Fukushima-Daiichi nuclear have been significant already, and the estimated total future costs have increased over time. The immediate payments have been possible by direct payments from the Japanese government. However, most these payments are not acknowledged as government spending. Instead, a complicated system of envisioned re-payments have been created.

Based on the three Special Business Plans published by TEPCO since the nuclear disaster, this evolving perception of the economic consequences and the increasingly complicated repayment schemes are described.

The conclusion of the authors are that the repayment schemes are not compatible with a future efficient, competitive electricity market.

It is suggested that other governments who implicitly or explicitly accepting economic liabilities for nuclear accidents prepare themselves in order to avoid un-necessary indirect cost after future reactors accidents.