Researchers from Ecole Polytechnique Describe Findings in Energy (Optimal Nuclear Liability Insurance): Energy

2022 JAN 18 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Current study results on Energy have been published. According to news reporting originating in Paris, France, by NewsRx journalists, research stated, “We analyze the insurance of nuclear liability risk, from theoretical and applied standpoints. Firstly, we characterize the optimal insurance scheme for a low-probability industrial accident, such as a nuclear catastrophe, when liability is shared between the firm and the State.”

The news reporters obtained a quote from the research from Ecole Polytechnique, “Using catastrophe bond data, we then evaluate the cost of capital sustaining such an insurance mechanism. Finally, we characterize the individual lotteries associated with the risk of a nuclear accident in France, and we estimate the optimal coverage.”

According to the news reporters, the research concluded: “We conclude that the liability limit currently in force is likely to be inferior to the socially optimal level.”

This research has been peer-reviewed.

For more information on this research see: Optimal Nuclear Liability Insurance. The Energy Journal, 2022;43(1). The Energy Journal can be contacted at: Int Assoc Energy Economics, 28790 Chagrin Blvd, Ste 210, Cleveland, OH 44122, USA.

Our news correspondents report that additional information may be obtained by contacting Pierre Picard, Ecole Polytechnique, CREST Research Project, Paris, France.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.5547/01956574.43.1.alou. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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