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The Immediate Impact of the Fukushima Daiichi Accident on Local Property Values

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  • Fumihiro Yamane
  • Hideaki Ohgaki
  • Kota Asano

Abstract

The Fukushima Daiichi accident released huge amounts of radioactive material over a wide area. We can appreciate the geographical extent of radioactive contamination from the information published online by the Japanese government. Historically, this is an unprecedented situation, which allows “natural experimentation” to estimate the causal effects of radioactive contamination on our society. This study focused on property value losses caused by the accident and analyzed changes in land appraisals around the Fukushima Daiichi plant from July 2010 to July 2011 within the framework of hedonic approach. Thus, we estimated the short‐run impact of the contamination or the change in marginal value of proximity to the plant. The results suggest that the appraisals significantly and monotonically depreciated with increasing contamination levels. However, there was no evidence to suggest changes in the marginal value of proximity to the plant. A comparison between the appraisals and transaction prices indicates that this result could be interpreted as an underestimate of actual property value losses.

Suggested Citation

  • Fumihiro Yamane & Hideaki Ohgaki & Kota Asano, 2013. "The Immediate Impact of the Fukushima Daiichi Accident on Local Property Values," Risk Analysis, John Wiley & Sons, vol. 33(11), pages 2023-2040, November.
    • Handle: RePEc:wly:riskan:v:33:y:2013:i:11:p:2023-2040
    DOI: 10.1111/risa.12045
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    1. Munro, Kirstin & Tolley, George, 2018. "Property values and tax rates near spent nuclear fuel storage," Energy Policy, Elsevier, vol. 123(C), pages 433-442.
    2. Yasuhiro Sato & Keita Shiba, 2021. "The impact of Tsunamis on land appraisals: Evidence from Western Japan," PLOS ONE, Public Library of Science, vol. 16(4), pages 1-14, April.
    3. Masayoshi Hayashi & Takafumi Suzuki, 2018. "Municipal Mergers and Capitalization: Evaluating the Heisei Territorial Reform in Japan," CIRJE F-Series CIRJE-F-1105, CIRJE, Faculty of Economics, University of Tokyo.
    4. Dennis Guignet & Anna Alberini, 2015. "Can Property Values Capture Changes in Environmental Health Risks? Evidence from a Stated Preference Study in Italy and the United Kingdom," Risk Analysis, John Wiley & Sons, vol. 35(3), pages 501-517, March.
    5. Yaoxuan Huang & Tsz Leung Yip & Cong Liang, 2020. "Risk Perception and Property Value: Evidence from Tianjin Port Explosion," Sustainability, MDPI, vol. 12(3), pages 1-16, February.
    6. Ferreira, Susana & Moro, Mirko & Welsch, Heinz, 2024. "Using Life Satisfaction and Happiness Data for Environmental Valuation: An Experienced Preference Approach," IZA Discussion Papers 16718, Institute of Labor Economics (IZA).
    7. KAWAGUCHI, Daiji & 川口, 大司 & YUKUTAKE, Norifumi & 行武, 憲史, 2014. "Estimating the Residential Land Damage of the Fukushima Accident," Discussion Papers 2014-18, Graduate School of Economics, Hitotsubashi University.

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