Can you tell me how you'll factor in cost of a an yet occur nuclear accident that may or may not happen some time in the future. The severity of a nuclear accident could be from anywhere near
this interesting compilation of nuclear incidents in India to a Cherynobl type of mega disaster.
You first raised the point of quantifying everything. Yet you still seem to not have an idea of how one can do that.
Well, obviously we have to use historical data for finding the probabilities. The probabilities of earthquakes and tsunamis can be estimated by scientists. Similarly, the probability that a component could fail is studied in reliability engineering. Given a reactor, they should tell us the probability that it would fail in X years.
I will provide a toy example. I am sure many members here can improve it.
Let us assume that we are told that given a new nuclear plant, we have the following probabilities:
No problems in 80 years: Probability 0.85 --> Liability = 0
1 Small accident in 80 years: Probability 0.13 --> Liability = 10
1 Big accident in 80 years: Probability 0.02 --> Liability = 1000
Total expected liability = 0*0.85 + 10* 0.13 + 1000* 0.02 = 21.3
Total electricity generated in 80 years: 1000000 units
Liability surcharge per unit electricity: 21.3/1000000
True cost of electricity = Cost of generation + Liability surcharge
This is, of course, based on class 10 level of Mathematics. People here will tell you there are opportunity costs and it should be discounted with time etc etc.