Tuesday, March 7, 2017

Nuclear power plant closures and local housing values: Evidence from Fukushima and the German housing market

The Fukushima Daiichi accident in Japan in March 2011 caused a fundamental change in Germany’s energy policy which led to the immediate shut down of nearly half of its nuclear power plants. Using data from Germany’s largest internet platform for real estate and employing a difference-in-differences approach, we find that Fukushima reduced housing prices near nuclear power plants that were in operation before Fukushima by 4.9%. Housing prices near sites that were shut down right after the accident even fell by 9.8%. Our results suggest that on the German housing market, the negative economic effects of the closure of nuclear power plants dominate potential positive changes in local amenities.
by Thomas K. Bauer 1 and 2, Sebastian T. Braun, 3 c, and 4, Michael Kvasnickae,  5 and 6, 
1. RWI-Leibniz-Institut für Wirtschaftsforschung, Hohenzollernstr. 1-3, 45128 Essen, Germany
2. Ruhr-University Bochum, RWI-Leibniz-Institut für Wirtschaftsforschung, IZA, Germany
3. University of St Andrews, School of Economics and Finance, Castlecliffe, The Scores, KY16 9AR, UK
4. University of St Andrews, UK, Kiel Institute for the World Economy, Germany
5. Otto von Guericke University Magdeburg, Universitätsplatz 2, 39016 Magdeburg, Germany
6. Otto von Guericke University Magdeburg, RWI-Leibniz-Institut für Wirtschaftsforschung, IZA, Germany
Journal of Urban Economics via Elsevier Science Direct www.ScienceDirect.com
Volume 99; May, 2017; Pages 94–106; Available online 10 February 2017
Keywords: Fukushima; Nuclear power plants; Housing prices; Germany

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