Splitting nuclear parks or not? The third party liability role

- We compare two electro-nuclear systems composed each of n nuclear plants.
- The first system is managed by a unique operator, the second one by n operators.
- We compare their respective safety costs and the cost of civil liability.
- The superiority of a management type depends on institutional values (insurance, ceiling repair caps).

This paper studies how the combination of strict liability regime, a stringent control from regulatory agencies and insurance companies could help in defining the highest prevention level concerning ultra-hazardous industries. It presents a model extended from two to n nuclear power stations and shows that the institutional conditions (cap on operator's liability and insurance compensation) play a fundamental role in inducing whether or not to centralize the management of a nuclear park. It reaches conclusive results in defining the critical ratios that induce either a centralized or a decentralized management.