Author
Listed:
- Masahiko Aoki
(Department of Economics and SIEPR, Stanford University)
- Geoffrey Rothwell
(Department of Economics and SIEPR, Stanford University)
AbstractThis paper analyzes the impacts of the March 11, 2011, earthquake and tsunami at the Fukushima nuclear power plant in Japan, which were amplified by a failure of coordination across the plant, corporate, industrial, and regulatory levels, resulting in a nuclear catastrophe comparable in cost to Chernobyl. It derives generic lessons for industrial structure and regulatory frame for the electric power industry by identifying the two shortcomings of a horizontal coordination mechanism: instability under large shocks and the lack of defense in depth.The suggested policy response is to harness the power of Òopen-interface-rule-based modularity by creating an independent nuclear safety commission and an independent system operator owning the transmission grid module in Japan. We propose a transitory price mechanism that can restrain price volatility while providing investment incentives.
Suggested Citation
Masahiko Aoki & Geoffrey Rothwell, 2011.
"Organizations under Large Uncertainty: An Analysis of the Fukushima Catastrophe,"
Discussion Papers
11-001, Stanford Institute for Economic Policy Research.
Handle:
RePEc:sip:dpaper:11-001
Download full text from publisher
References listed on IDEAS
- Masahiko Aoki & Hirokazu Takizuwa, 2013.
"Information, Incentives, and Option Value: The Silicon Valley Model,"
Chapters, in: Comparative Institutional Analysis, chapter 7, pages 72-104,
Edward Elgar Publishing.
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"Information, Incentives, and Option Value: The Silicon Valley Model,"
Journal of Comparative Economics, Elsevier, vol. 30(4), pages 759-786, December.
- Masahiko Aoki, 2013.
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Chapters, in: Comparative Institutional Analysis, chapter 5, pages 57-58,
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- Ricardo Alonso & Wouter Dessein & Niko Matouschek, 2008.
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"When Does Coordination Require Centralization?,"
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5802, C.E.P.R. Discussion Papers.
- Alonso, Ricardo & Dessein, Wouter & Matouschek, Niko, 2008.
"When does coordination require centralization?,"
LSE Research Online Documents on Economics
58664, London School of Economics and Political Science, LSE Library.
- Masahiko Aoki, 2013.
"Toward an Economic Model of the Japanese Firm,"
Chapters, in: Comparative Institutional Analysis, chapter 18, pages 315-341,
Edward Elgar Publishing.
- Aoki, Masahiko, 2010.
"Corporations in Evolving Diversity: Cognition, Governance, and Institutions,"
OUP Catalogue,
Oxford University Press, number 9780199218530, Decembrie.
- Rothwell, Geoffrey, 1996.
"Organizational Structure and Expected Output at Nuclear Power Plants,"
The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 482-488, August.
Full references (including those not matched with items on IDEAS)
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Cited by:
- Francesc Trillas Jané, 2016.
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Working Papers
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- Masahiko Aoki, 2011.
"The Five-Phases of Economic Development and Institutional Evolution in China and Japan,"
Development Economics Working Papers
23196, East Asian Bureau of Economic Research.
- Trillas, Francesc, 2013.
"The Institutional Architecture of Regulation and Competition: Spains's 2012 Reform,"
IESE Research Papers
D/1067, IESE Business School.
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