Nuclear power plant by the sea in Vandellos (Tarragona, Spain)
"The Economics of Nuclear Energy Markets and the Future of International Security"
Working Paper 2008-01-08, Risk Management and Decision Processes Center, Wharton School of the University of Pennsylvania
Belfer Center Programs or Projects: International Security
This paper discusses the evolution of nuclear energy markets and key drivers of the growing "nuclear renaissance." We focus on uranium, the largest part of the nuclear fuel markets, and analyze market demand, supply, and prices since the 1970s. We review the forces impacting this market—historically and prospectively—and note proliferation concerns surrounding nuclear energy: i.e. the same facilities that enrich uranium for electricity generation can also enrich it further for nuclear weapons.
We discuss proposals currently being offered by the international community to counter this proliferation challenge and propose a complementary solution: the development of a market-based approach that relies on what has become the largest industry in the world, insurance and finance. We analyze the feasibility of such an “Insure to Assure” approach, developed in conjunction with the public sector, and its implications for international security and nuclear energy markets (including the possible commoditization of enriched uranium).
For more information about this publication please contact the ISP Program Coordinator at 617-496-1981.
Full text of this publication is available at:
For Academic Citation: