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Fear of nuclear power? Evidence from Fukushima nuclear accident and land markets in China

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  • Zhu, Hongjia
  • Deng, Yongheng
  • Zhu, Rong
  • He, Xiaobo

Abstract

This paper examines whether the 2011 Fukushima Nuclear Accident (FNA) changed the Chinese public's attitude toward nuclear energy by studying transactions in land markets near nuclear power plants in China. Using a data set that matched the details of all nuclear reactors in China with information on land transactions around them before and after the FNA, we find that the accident had dynamic effects on land markets in China. Land prices within 40km of nuclear power plants dropped by about 18% one month after the nuclear accident. However, the impact of FNA decreased over the longer term, eventually becoming statistically insignificant. Also, the impacts of the disaster varied with plant characteristics such as operating status, construction year, and size.

Suggested Citation

  • Zhu, Hongjia & Deng, Yongheng & Zhu, Rong & He, Xiaobo, 2016. "Fear of nuclear power? Evidence from Fukushima nuclear accident and land markets in China," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 139-154.
    • Handle: RePEc:eee:regeco:v:60:y:2016:i:c:p:139-154
    DOI: 10.1016/j.regsciurbeco.2016.06.008
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    8. Thais Waideman Niquito & Fernando Pozzobon & Vinícius Halmenschlager & Felipe Garcia Ribeiro, 2021. "Human-made disasters and economic impact for a developing economy: evidence from Brazil," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 109(3), pages 2313-2341, December.
    9. Huang, Lei & He, Ruoying & Yang, Qianqi & Chen, Jin & Zhou, Ying & Hammitt, James K. & Lu, Xi & Bi, Jun & Liu, Yang, 2018. "The changing risk perception towards nuclear power in China after the Fukushima nuclear accident in Japan," Energy Policy, Elsevier, vol. 120(C), pages 294-301.
    10. Takano, Keisuke, 2019. "Does visible shock update firms' unrelated trade diversity in anticipation of future shock? Evidence from the Great East Japan Earthquake and expected Nankai Trough Earthquake," TDB-CAREE Discussion Paper Series E-2019-01, Teikoku Databank Center for Advanced Empirical Research on Enterprise and Economy, Graduate School of Economics, Hitotsubashi University.
    11. Tao Chen & Youchao Tan & Jinghua Wang & Cheng (Colin) Zeng, 2022. "The Unintended Consequence of Land Finance: Evidence from Corporate Tax Avoidance," Management Science, INFORMS, vol. 68(11), pages 8319-8342, November.
    12. Qian, Xianhang & Qiu, Shanyun & Zhang, Guangli, 2021. "The impact of COVID-19 on housing price: Evidence from China," Finance Research Letters, Elsevier, vol. 43(C).
    13. Kosai, Shoki & Yamasue, Eiji, 2019. "Recommendation to ASEAN nuclear development based on lessons learnt from the Fukushima nuclear accident," Energy Policy, Elsevier, vol. 129(C), pages 628-635.
    14. Wang, Jian & Wu, Qun & Yan, Siqi & Guo, Guancheng & Peng, Shangui, 2020. "China’s local governments breaking the land use planning quota: A strategic interaction perspective," Land Use Policy, Elsevier, vol. 92(C).
    15. Mauricio Sarrias & Benjamin Jara, 2020. "How Much Should We Pay for Mental Health Deterioration? The Subjective Monetary Value of Mental Health After the 27F Chilean Earthquake," Journal of Happiness Studies, Springer, vol. 21(3), pages 843-875, March.
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    More about this item

    Keywords

    Fukushima nuclear accident; Nuclear energy; Environment; Land market; China;
    All these keywords.

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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