The Paradox of Nuclear Power Plants (NPPs) between High-Efficiency Energy and Waste Management Concerns in the Context of Disasters Worldwide

Abstract

With the uncertainty concerning the future use of natural resources due to depletion and lack of access caused by the pandemic and recent political events that led to increased prices, nuclear energy may become an alternative efficient energy. NPPs raise serious concerns, including waste management, and any case of an NPP accident has the potential to disrupt the positive impact of energy production in terms of circular economies. Our research analyzed the impact of nuclear incidents as examples of disasters worldwide to decide whether any of the different forms of insurance coverage could be useful in future events. By using 2533 historical records of incidents from 1901 to June 2022, we set out to find the best predictor of damage causes and further observe whether the validation of current forms of insurance may be possible. The disaster subtype and declaration represent the best predictor of the total damage value (adjusted or not) for all types of disasters, including nuclear. The results are important inputs for underwriters working in insurance, including in radioactive waste management, which must consider historical data in order to tailor future contracts, adjusting the cost and coverage to the type of disaster. Our results highlight that with an increase of only one event involving a nuclear source, the total adjusted damages will increase by USD 1,821,087.09 thousand, representing 75% of the damage costs of the rest of the disaster subtypes. The results are useful for public entities to evaluate nuclear energy as a new solution and can help further adapt existing policies to include better responses for waste prevention, reuse and recycling.