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Public Preferences for Alternative Electricity Mixes in Post-Fukushima Japan

Listed author(s):
  • Katrin Rehdanz

    (Kiel Institute for the World Economy)

  • Carsten Schroeder

    (German Institute for Economic Research(DIW Berlin)/ SOEP)

  • Daiju Narita

    (JICA Research Institute)

  • Toshihiro Okubo

    (Faculty of Economics, Keio University)

Using representative household survey data from Japan after the Fukushima accident, we estimate peoples' willingness-to-pay (WTP) for renewable, nuclear, and fossil fuels in electricity generation. We rely on random parameter econometric techniques to capture various degrees of heterogeneity between the respondents, and use detailed regional information to assess how WTP varies with the distance to both the nearest nuclear power plant and to Fukushima. Compared to fossil fuels, we find a positive WTP for renewable and a negative WTP for nuclear fuels. These effects, in absolute terms, increase with the proximity to Fukushima.

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Paper provided by Institute for Economics Studies, Keio University in its series Keio-IES Discussion Paper Series with number 2015-013.

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Length: 25 pages
Date of creation: 08 Dec 2015
Handle: RePEc:keo:dpaper:2015-013
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