Geographic location of nuclear power plants: love thy neighbour as thyself?
Spatial Economic Analysis, vol.19, no.4, pp.549-562, 2024 (SSCI, Scopus)
- Publication Type: Article / Article
- Volume: 19 Issue: 4
- Publication Date: 2024
- Doi Number: 10.1080/17421772.2024.2301955
- Journal Name: Spatial Economic Analysis
- Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, International Bibliography of Social Sciences, ABI/INFORM, Business Source Elite, Business Source Premier, EconLit, INSPEC
- Page Numbers: pp.549-562
- Keywords: distance from neighbour, implicit risk-sharing, Location choice, nuclear plants, property rights
- Open Archive Collection: AVESIS Open Access Collection
- Ankara Yıldırım Beyazıt University Affiliated: Yes
Abstract
Countries have incentives to geographically locate high-risk industries outside their own jurisdiction or close to the borders with neighbours. Nuclear power-plants (NPPs) are a good example of high-risk economic activity. The average distance of existing NPPs from neighbouring country borders was only 41 miles, implying that the location planning of NPPs considers the host country’s efforts to impose negative externality on neighbours. Empirical analyses indicate that countries choose to place the NPPs away from their major cities and close to the borders with another country. The distances of NPPs from borders are affected by the riskiness of the plants and the relative sizes of the countries.