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U.S. housing prices and the Fukushima nuclear accident

Author

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  • Fink, Alexander
  • Stratmann, Thomas

Abstract

Did the nuclear catastrophe at Fukushima in March 2011 cause individuals to reappraise the risks they attach to nuclear power plants? We investigate the change in home prices in the U.S. after the Fukushima event to test the hypothesis that home prices in the proximity of power plants fell due to an updated nuclear risk perception. Using a difference-in-differences approach, we do not find evidence in support of the hypothesis that individuals reappraised the risks associated with nuclear power plants. According to our results home prices close to nuclear reactor sites did not fall relative to home prices at other locations in the U.S.

Suggested Citation

  • Fink, Alexander & Stratmann, Thomas, 2015. "U.S. housing prices and the Fukushima nuclear accident," Journal of Economic Behavior & Organization, Elsevier, vol. 117(C), pages 309-326.
  • Handle: RePEc:eee:jeborg:v:117:y:2015:i:c:p:309-326
    DOI: 10.1016/j.jebo.2015.07.005
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:jeeman:v:88:y:2018:i:c:p:411-426 is not listed on IDEAS
    2. Ando, Michihito & Dahlberg, Matz & Engström, Gustav, 2017. "The risks of nuclear disaster and its impact on housing prices," Economics Letters, Elsevier, vol. 154(C), pages 13-16.
    3. Tajima, Kayo & Yamamoto, Masashi & Ichinose, Daisuke, 2016. "How do agricultural markets respond to radiation risk? Evidence from the 2011 disaster in Japan," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 20-30.
    4. repec:eee:energy:v:152:y:2018:i:c:p:291-302 is not listed on IDEAS
    5. Mounir Ben Mbarek & Samia Nasreen & Rochdi Feki, 2017. "The contribution of nuclear energy to economic growth in France: short and long run," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(1), pages 219-238, January.
    6. Huhtala, Anni & Remes, Piia, 2017. "Quantifying the social costs of nuclear energy: Perceived risk of accident at nuclear power plants," Energy Policy, Elsevier, vol. 105(C), pages 320-331.
    7. 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.
    8. repec:eee:juecon:v:99:y:2017:i:c:p:94-106 is not listed on IDEAS

    More about this item

    Keywords

    Fukushima; Nuclear accident; Hedonic prices; Housing; Updating;

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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