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Estimating the residential land damage of the Fukushima nuclear accident

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  • Kawaguchi, Daiji
  • Yukutake, Norifumi

Abstract

The cost of a nuclear power plant accident critically depends on people’s willingness to pay for avoiding exposure to the nuclear fallout. This paper is the first to estimate such a willingness to pay by observing the change in transaction prices before and after the Fukushima nuclear accident with the degree of radioactive contamination. The estimates, which are based on hedonic price equations with the degree of radioactive contamination measured by airborne surveys, indicate that the contamination decreased the price of residential land and imply a substantial willingness to pay to avoid exposure to the radioactive fallout. The estimated total residential land depreciation ranges from 1.5 to 3.0 trillion yen, approximately equivalent to 15–30 billion US dollars, or about 0.13–0.25% of Japan’s total land value.

Suggested Citation

  • Kawaguchi, Daiji & Yukutake, Norifumi, 2017. "Estimating the residential land damage of the Fukushima nuclear accident," Journal of Urban Economics, Elsevier, vol. 99(C), pages 148-160.
    • Handle: RePEc:eee:juecon:v:99:y:2017:i:c:p:148-160
    DOI: 10.1016/j.jue.2017.02.005
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    5. Daniel Melser, 2023. "The housing market reaction to the combustible cladding crisis: Safety or financial concerns?," Urban Studies, Urban Studies Journal Limited, vol. 60(4), pages 620-637, March.
    6. Jorge Hugo Barrientos-Marín & Sebastian Ospina-Valencia & Sebastian Giraldo, 2020. "The economic cost of natural disasters the case of the tsunami and nuclear emergency in Japan in 2011," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 93, pages 225-260, Julio-Dic.
    7. Okubo, Toshihiro & Narita, Daiju & Rehdanz, Katrin & Schröder, Carsten, 2020. "Preferences for Nuclear Power in Post-Fukushima Japan: Evidence from a Large Nationwide Household Survey," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 13(11).
    8. Wang, Shanyong & Wang, Jing & Lin, Shoufu & Li, Jun, 2019. "Public perceptions and acceptance of nuclear energy in China: The role of public knowledge, perceived benefit, perceived risk and public engagement," Energy Policy, Elsevier, vol. 126(C), pages 352-360.
    9. INUI Tomohiko & OKUDAIRA Hiroko, 2022. "Parental Investment after Adverse Event: Evidence from the Great East Japan Earthquake," Discussion papers 22049, Research Institute of Economy, Trade and Industry (RIETI).
    10. Guojun He & Takanao Tanaka, 2019. "Energy Saving Can Kill: Evidence from the Fukushima Nuclear Accident," HKUST IEMS Working Paper Series 2019-67, HKUST Institute for Emerging Market Studies, revised Sep 2019.
    11. Okamoto, Chigusa & Sato, Yasuhiro, 2021. "Impacts of high-speed rail construction on land prices in urban agglomerations: Evidence from Kyushu in Japan," Journal of Asian Economics, Elsevier, vol. 76(C).
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    13. Behling, Noriko & Williams, Mark C. & Managi, Shunsuke, 2019. "Regulating Japan's nuclear power industry to achieve zero-accidents," Energy Policy, Elsevier, vol. 127(C), pages 308-319.

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    More about this item

    Keywords

    Willingness to pay; Fukushima; Nuclear power plant; Land property damage; Radioactive contamination; Land contamination;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • 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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