IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v126y2016icp98-111.html
   My bibliography  Save this article

Measuring nuclear power plant externalities using life satisfaction data: A spatial analysis for Switzerland

Author

Listed:
  • Welsch, Heinz
  • Biermann, Philipp

Abstract

We investigate the relationship between Swiss citizens' life satisfaction (understood as a proxy of utility) and the distance of their place of residence from the nearest nuclear power plant. Using survey data for up to 12,264 Swiss citizens, elicited in February–August 2011, and several specifications of distance, we find a statistically and economically significant satisfaction-distance gradient. The gradient is smaller for those who may feel protected by wind direction and topographical conditions, and it differs by age, sex, and the level of education. The satisfaction-distance gradient has changed significantly after the nuclear disaster at Fukushima, Japan, indicating a reassessment of distance-dependent nuclear risk due to an information shock.

Suggested Citation

  • Welsch, Heinz & Biermann, Philipp, 2016. "Measuring nuclear power plant externalities using life satisfaction data: A spatial analysis for Switzerland," Ecological Economics, Elsevier, vol. 126(C), pages 98-111.
  • Handle: RePEc:eee:ecolec:v:126:y:2016:i:c:p:98-111
    DOI: 10.1016/j.ecolecon.2016.02.016
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S092180091630218X
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Yves Schneider & Peter Zweifel, 2013. "Spatial Effects in Willingness to Pay for Avoiding Nuclear Risks," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 149(III), pages 357-379, September.
    2. Goebel, Jan & Krekel, Christian & Tiefenbach, Tim & Ziebarth, Nicolas R., 2013. "Natural Disaster, Policy Action, and Mental Well-Being: The Case of Fukushima," IZA Discussion Papers 7691, Institute of Labor Economics (IZA).
    3. repec:icr:wpmath:06-2013 is not listed on IDEAS
    4. Bayer, Patrick & Keohane, Nathaniel & Timmins, Christopher, 2009. "Migration and hedonic valuation: The case of air quality," Journal of Environmental Economics and Management, Elsevier, vol. 58(1), pages 1-14, July.
    5. Gawande, Kishore & Jenkins-Smith, Hank, 2001. "Nuclear Waste Transport and Residential Property Values: Estimating the Effects of Perceived Risks," Journal of Environmental Economics and Management, Elsevier, vol. 42(2), pages 207-233, September.
    6. Levinson, Arik, 2012. "Valuing public goods using happiness data: The case of air quality," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 869-880.
    7. Bruno S. Frey & Simon Luechinger & Alois Stutzer, 2007. "Calculating Tragedy: Assessing The Costs Of Terrorism," Journal of Economic Surveys, Wiley Blackwell, vol. 21(1), pages 1-24, February.
    8. Lucas W. Davis, 2012. "Prospects for Nuclear Power," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 49-66, Winter.
    9. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, July.
    10. Ambrey, Christopher L. & Fleming, Christopher M., 2014. "The causal effect of income on life satisfaction and the implications for valuing non-market goods," Economics Letters, Elsevier, vol. 123(2), pages 131-134.
    11. Simon Luechinger, 2009. "Valuing Air Quality Using the Life Satisfaction Approach," Economic Journal, Royal Economic Society, vol. 119(536), pages 482-515, March.
    12. Bruno S. Frey & Alois Stutzer, 2002. "What Can Economists Learn from Happiness Research?," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 402-435, June.
    13. David E. Clark & Tim Allison, 1999. "articles: Spent nuclear fuel and residential property values: the influence of proximity, visual cues and public information," Papers in Regional Science, Springer;Regional Science Association International, vol. 78(4), pages 403-421.
    14. Susana Ferreira & Mirko Moro, 2010. "On the Use of Subjective Well-Being Data for Environmental Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 46(3), pages 249-273, July.
    15. Farber, Stephen, 1998. "Undesirable facilities and property values: a summary of empirical studies," Ecological Economics, Elsevier, vol. 24(1), pages 1-14, January.
    16. Jon P. Nelson, 1981. "Three Mile Island and Residential Property Values: Empirical Analysis and Policy Implications," Land Economics, University of Wisconsin Press, vol. 57(3), pages 363-372.
    17. Mary Riddel & Christine Dwyer & W. Douglass Shaw, 2003. "Environmental Risk and Uncertainty: Insights from Yucca Mountain," Journal of Regional Science, Wiley Blackwell, vol. 43(3), pages 435-458.
    18. repec:zbw:rwirep:0433 is not listed on IDEAS
    19. Heinz Welsch & Jan Kühling, 2009. "Using Happiness Data For Environmental Valuation: Issues And Applications," Journal of Economic Surveys, Wiley Blackwell, vol. 23(2), pages 385-406, April.
    20. Bauer, Thomas K. & Braun, Sebastian & Kvasnicka, Michael, 2013. "Distant event, local effects? Fukushima and the German housing market," Kiel Working Papers 1857, Kiel Institute for the World Economy (IfW).
    21. Rehdanz, Katrin & Welsch, Heinz & Narita, Daiju & Okubo, Toshihiro, 2015. "Well-being effects of a major natural disaster: The case of Fukushima," Journal of Economic Behavior & Organization, Elsevier, vol. 116(C), pages 500-517.
    22. Welsch, Heinz & Biermann, Philipp, 2014. "Electricity supply preferences in Europe: Evidence from subjective well-being data," Resource and Energy Economics, Elsevier, vol. 38(C), pages 38-60.
    23. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-1278, December.
    24. Bruno S. Frey & Simon Luechinger & Alois Stutzer, 2010. "The Life Satisfaction Approach to Environmental Valuation," Annual Review of Resource Economics, Annual Reviews, vol. 2(1), pages 139-160, October.
    25. George MacKerron, 2012. "Happiness Economics From 35 000 Feet," Journal of Economic Surveys, Wiley Blackwell, vol. 26(4), pages 705-735, September.
    26. Alexander Fink & Thomas Stratmann, 2013. "U.S. housing prices and the Fukushima nuclear accident: To update, or not to update, that is the question," ICER Working Papers 04-2013, ICER - International Centre for Economic Research.
    27. Rehdanz, Katrin & Maddison, David, 2005. "Climate and happiness," Ecological Economics, Elsevier, vol. 52(1), pages 111-125, January.
      • Katrin Rehdanz & David J. Maddison, 2003. "Climate and Happiness," Working Papers FNU-20, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2003.
    28. Welsch, Heinz & Biermann, Philipp, 2014. "Fukushima and the preference for nuclear power in Europe: Evidence from subjective well-being data," Ecological Economics, Elsevier, vol. 108(C), pages 171-179.
    29. Dolan, Paul & Peasgood, Tessa & White, Mathew, 2008. "Do we really know what makes us happy A review of the economic literature on the factors associated with subjective well-being," Journal of Economic Psychology, Elsevier, vol. 29(1), pages 94-122, February.
    30. Welsch, Heinz, 2002. "Preferences over Prosperity and Pollution: Environmental Valuation Based on Happiness Surveys," Kyklos, Wiley Blackwell, vol. 55(4), pages 473-494.
    31. Fumio Ohtake & Katsunori Yamada, 2013. "Appraising the Unhappiness due to the Great East Japan Earthquake: Evidence from Weekly Panel Data on Subjective Well-being," ISER Discussion Paper 0876, Institute of Social and Economic Research, Osaka University.
    32. Eva M. Berger, 2010. "The Chernobyl Disaster, Concern about the Environment, and Life Satisfaction," Kyklos, Wiley Blackwell, vol. 63(1), pages 1-8, February.
    33. Richard Layard, 2006. "Happiness and Public Policy: a Challenge to the Profession," Economic Journal, Royal Economic Society, vol. 116(510), pages 24-33, March.
    34. Rehdanz, Katrin & Welsch, Heinz & Narita, Daiju & Okubo, Toshihiro, 2013. "Well-being effects of a major negative externality: The case of Fukushima," Kiel Working Papers 1855, Kiel Institute for the World Economy (IfW).
    35. Sherman Folland & Robbin Hough, 2000. "Externalities of Nuclear Power Plants: Further Evidence," Journal of Regional Science, Wiley Blackwell, vol. 40(4), pages 735-753.
    36. Lucas W. Davis, 2011. "The Effect of Power Plants on Local Housing Values and Rents," The Review of Economics and Statistics, MIT Press, vol. 93(4), pages 1391-1402, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Welsch, Heinz, 2016. "Electricity Externalities, Siting, and the Energy Mix: A Survey," International Review of Environmental and Resource Economics, now publishers, vol. 10(1), pages 57-94, November.
    2. repec:eee:ecolec:v:141:y:2017:i:c:p:245-260 is not listed on IDEAS
    3. repec:lde:journl:y:2018:i:88:p:183-205 is not listed on IDEAS
    4. repec:col:000174:016026 is not listed on IDEAS

    More about this item

    Keywords

    Nuclear risk; Life satisfaction; Non-market valuation; Spatial equilibrium; Fukushima;

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:126:y:2016:i:c:p:98-111. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.