Abstract
The external effects arising from the use of nuclear power are, in a fundamental way, related to uncertainty. In this paper we locate these external effects and derive a dynamic Pigouvian tax in order to make the decentralized economy support the command optimum. Another interesting result is that a small constant energy tax (which we interpret as a second best policy) can take the decentralized economy reasonably close to the command optimum.
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Aronsson, T., Backlund, K. & Löfgren, KG. Nuclear Power, Externalities and Non-Standard Pigouvian Taxes. Environmental and Resource Economics 11, 177–195 (1998). https://doi.org/10.1023/A:1008200513848
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DOI: https://doi.org/10.1023/A:1008200513848