The Costs of Fukushima

Extract

Greenpeace has released a report Toxic Assets: Nuclear Assets in the 21^st Century, which presents evidence on the costs of nuclear accidents from the point of view of risk to investors. Greenpeace is not following the capital because of any corporate attachment. The report counters the common post-Fukushima argument that nuclear power is both inexpensive for consumers and a good investment for investors. The “cheap nuclear” mantra, they argue, fails to take into account the fact that nuclear plants can break a company and pass huge liabilities on to taxpayers. According to this report, nuclear seems represents everything wrong with contemporary capitalism – private companies reap profits while the public underwrites tremendous and obvious risks while concerns about sustainability are muted to assure short-term profits. The Japan Center for Economic Research places the likely Fukushima clean-up total at between 72 and 250 billion $US. This is at least several times the company's market value before the Fukushima disaster, an indication that the massive risks tied up with nuclear power are simply not being factored in to market valuations, which reflect estimates of future profitability.