ABSTRACT
The disposal of highly radioactive wastes forces us to ask who will bear the risk of exposure. This chapter explores the nature of the low-probability, high-consequence risk factors of nuclear waste. The analysis is applied to the proposed Hanford, Washington, nuclear waste repository site. Drawing from statistical theory, the author discusses types of decision errors and statistical loss functions. Policies that affect the allocation of risk—performance bonding and insurance, for example—are analyzed in the context of the prolonged time horizon presented by high-level radioactiye wastes. The chapter provides a framework for use in environmental impact policy analysis. Key elements of the framework are uncertainty, potential irreversibilities, and intergenerational effects. Institutional designs to account for these elements are analyzed for their effect on potential risk-bearing interest groups.
