THE ECONOMICS OF NUCLEAR ACCIDENT LAW

Statutes restrict the application of common tort law to accidents at n uclear power plants in Canada, the U.S,, and other countries. The stat utes transfer to the operator of a nuclear plant liability that would otherwise be placed on input suppliers and in return limit the liabili ty of the operator. This essay addresses the impact on safety incentiv es of nuclear accident law, with broader implications for the design o f incentive systems that combine regulation and liability rules. (C) 1 997 by Elsevier Science Inc.