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Estimating the effects of nuclear power facilities on local income levels: A quasi-experimental approach

  • Ando, Michihito

    ()

    (Department of Economics)

This paper studies how the establishment of Nuclear Power Facilities (NPF) in the 1970s and 1980s has affected local per capita income levels in NPF-located municipalities in Japan by using the synthetic control method (SCM). Eight quantitative case studies using the SCM clarify that the effects of NPF establishment on per capita taxable income levels are highly heterogeneous, but often economically meaningful and in some cases huge: an 11 % increase on average, a 62 % increase in Rokkasho village in 2002 and a 30 % increase in Tomioka town in 2002. On the other hand, a few NPF-located municipalities receive weak or negligible effects from NPF establishment. I also examine the statistical significance of individual treatment effects with several placebo tests and find that the treatment effects of 4 out of the 8 NPF locations are larger than 95% of placebo effects.

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File URL: http://uu.diva-portal.org/smash/get/diva2:604236/FULLTEXT01.pdf
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Paper provided by Uppsala University, Department of Economics in its series Working Paper Series with number 2013:3.

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Length: 44 pages
Date of creation: 27 Jan 2013
Date of revision:
Publication status: Published as Ando, Michihito, 'Dreams of urbanization: Quantitative case studies on the local impacts of nuclear power facilities using the synthetic control method' in Journal of Urban Economics, 2015, pages 68-85.
Handle: RePEc:hhs:uunewp:2013_003
Contact details of provider: Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
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