an economic analysis of the nuclear liability subsidy.pdf

Pace Environmental Law R eview Volume 26 Issue 2 Summer 2009 Article 5 40 Years and Counting R elicensing t he Fir t Generation of Nuclear Power Plant J une 2009 An Economic Analysis Of The Nuclear Liability Subsidy Michael G. Faure Karine Fiore Follow this and additional works at : /pelr Recommended Citation Michael G. Faure and Karine Fiore, An Eco nomic Analy sis Of The Nuclear Liability Su bsidy, 26 Pace Envtl. L. Rev. 419 (2009) Availa le at : /pelr/vol26/iss2/5 This Article is brought to you for free and open access y the School of Law at DigitalCommons@Pace. It has been accepted for inclusion in Pace Environmental Law R eview y an authorized administrator of DigitalCommons@Pace. For more information, please contact cpittson@. FAURE_JCI8.DOC 7/28/2009 12:25:59 PM An Economic Analysis of the Nuclear Liability Subsidy * ** MICHAEL G. FAURE LL.M. AND KARINE FIORE I. INTRODUCTION1 Energy markets are undergoing major change. They have to cope with a new economic environment and, at the same time, a new energy context. Indeed, on the one hand, energy markets are undergoing deregulation with the aim of opening them to competition.2 They are also submitted to priva- tisation policies, which progressively detach them from the government’s hold.3 This trend is transforming the market structure and might particu- larly modify operators’ behaviour and strategies. On the other hand, energy markets face new environmental constraints. Indeed, fossil fuel resources, such as oil, coal, and gas, which are still widely used today, are highly pol- luting and largely contri