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U.S. Housing Prices and the Fukushima Nuclear Accident: To Update, or Not to Update, that is the Question

ICER Working Paper No. 4/2013

31 Pages Posted: 23 Apr 2013  

Alexander Fink

University of Leipzig

Thomas Stratmann

George Mason University - Buchanan Center Political Economy; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: April 23, 2013

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 housing prices in the U.S. after the Fukushima event to test the hypothesis that house 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 reappraise the risks associated with nuclear power plants. House prices close to nuclear reactor sites did not fall relative to house prices at other locations in the U.S.

Keywords: Fukushima, nuclear accident, hedonic prices, housing, updating

JEL Classification: D80, Q51, R31

Suggested Citation

Fink, Alexander and Stratmann, Thomas, U.S. Housing Prices and the Fukushima Nuclear Accident: To Update, or Not to Update, that is the Question (April 23, 2013). ICER Working Paper No. 4/2013. Available at SSRN: https://ssrn.com/abstract=2255325 or http://dx.doi.org/10.2139/ssrn.2255325

Alexander Fink (Contact Author)

University of Leipzig ( email )

Grimmaische Str. 12
Leipzig, 04109

HOME PAGE: http://www.alexander-fink.com

Thomas Stratmann

George Mason University - Buchanan Center Political Economy ( email )

4400 University Drive
Fairfax, VA 22030
United States
703-993-2330 (Phone)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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