This report examines the direct and indirect economic and political costs associated with accidental or deliberate nuclear security incidents at nuclear facilities. It analyzes the immediate and long-term economic impacts, including loss of life, property damage, disruptions to electricity generation, and broader social and behavioral effects such as changes in public risk perception and government policy. Economic costs are assessed using value of statistical life (VSL) estimates, housing price declines, and the costs of alternative energy production, with case studies including the Fukushima Daiichi disaster, Germany’s post-Fukushima nuclear energy policies, and the San Onofre Nuclear Generating Station closure. These examples demonstrate that the economic consequences of nuclear facility incidents can reach hundreds of billions of dollars.
The report also explores the political consequences of nuclear security incidents, focusing on government decision-making, public trust, and domestic audience costs. It examines how leadership, institutional quality, and public confidence influence responses to nuclear incidents, as well as the political challenges associated with cleanup efforts, infrastructure improvements, and investments in enhanced safety and security measures. Additionally, the report considers the effects of declining public support, anti-nuclear movements, protests, and policy debates surrounding the future use of nuclear technology. The report concludes by discussing key policy implications and recommendations for mitigating the economic and political impacts of nuclear security incidents.