Economic Valuation of a Rise in Ambient Radiation Risks: Hedonic Pricing Evidence from the Accident in Fukushima

24 Pages Posted: 6 Jun 2018

See all articles by Alistair Munro

Alistair Munro

National Graduate Institute for Policy Studies (GRIPS); University of London, Royal Holloway College - Department of Economics

Date Written: June 2018

Abstract

Using a combined data set of radiation levels and property prices from Fukushima and Miyagi prefectures that runs from 2009 to early 2017, the economic impact of radiation from the Fukushima nuclear accident is assessed. A 1 percent rise in radiation is associated with approximately 0.051 percentage drop in housing prices and though the level of radiation falls substantially after 2011, the estimated elasticity is broadly stable. The associated estimate of VSL (value of a statistical life) is in the region of US$4.5–6.4 million, which suggests no strong element of dread or overestimation of risks is present.

Keywords: Fukushima, hedonic pricing, mortality risk, nuclear accident, radiation

Suggested Citation

Munro, Alistair, Economic Valuation of a Rise in Ambient Radiation Risks: Hedonic Pricing Evidence from the Accident in Fukushima (June 2018). Journal of Regional Science, Vol. 58, Issue 3, pp. 635-658, 2018, Available at SSRN: https://ssrn.com/abstract=3191606 or http://dx.doi.org/10.1111/jors.12381

Alistair Munro (Contact Author)

National Graduate Institute for Policy Studies (GRIPS) ( email )

Tokyo
Japan

HOME PAGE: http://www.grips.ac.jp/

University of London, Royal Holloway College - Department of Economics ( email )

Royal Holloway College
Egham
Surrey, Surrey TW20 0EX
United Kingdom

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