How do agricultural markets respond to radiation risk? Evidence from the 2011 disaster in Japan

Tajima, Kayo; Yamamoto, Masao; Ichinose, Daisuke

doi:10.1016/j.regsciurbeco.2016.06.004

Cited by 13 publications

(8 citation statements)

References 26 publications

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“…Our study is related to the large literature investigating the housing capitalisation effects of changes in local amenities. While our focus on the combustible cladding crisis is unique, other studies have looked at a range of related events, such as transport infrastructure (Lieske et al, 2021;Melser, 2020), prospective sea-level rise (Bernstein et al, 2019;Keys and Mulder, 2020), exposure to flood risks (Rambaldi et al, 2013), changes in school quality or characteristics (Haisken-DeNew et al, 2018;Melser et al, 2021), the effect of visual amenities such as wind farms (Gibbons, 2015) and the impact of informational shocks about nuclear power resulting from the 2011 Fukushima accident (Bauer et al, 2017;Fink and Stratmann, 2015;Kawaguchi and Yukutake, 2017;Tajima et al, 2016;Tanaka and Zabel, 2018). A key focus of these studies is quantifying the overall effect on prices of the events of interest.…”

Section: Related Literaturementioning

confidence: 99%

The housing market reaction to the combustible cladding crisis: Safety or financial concerns?

Melser

2022

Urban Studies

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The risks of combustible cladding were most catastrophically illustrated by the Grenfell Tower fire in London in mid-2017 which killed 72 people. Prior to this, in late 2014, the Lacrosse Tower fire in Melbourne, Australia, provided a prescient illustration of the risks of combustible cladding. This study examines the effect on Melbourne prices, rents and transactions of these fires from 2005 to mid-2019. The dynamics of prices and rents provide important information about the extent to which the housing market reaction was driven by safety or financial concerns. This is because tenants are primarily exposed to the safety risks of combustible cladding while the prices paid by owner-occupiers reflect both safety and financial concerns – such as future remediation costs. We find an overall decline of around [Formula: see text] in the prices paid by owner-occupiers for homes affected by combustible cladding, while rents for similar properties fell by around [Formula: see text]. Thus, we conclude that the main factor driving the housing market reaction was financial concerns. This conclusion is robust to more tightly identifying properties that were affected by combustible cladding. We also find that property investors reduce their property valuations of combustible cladding homes more significantly than owner-occupiers and that there are declines in transaction volumes for affected homes.

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Section: Related Literaturementioning

confidence: 99%

The housing market reaction to the combustible cladding crisis: Safety or financial concerns?

Melser

2022

Urban Studies

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“…Their results also indicated less reputation damage in regions where consumers of Fukushima peaches were present prior to the nuclear accident. Tajima et al (2016) found that reputation damage resulted in a 10-36 per cent decrease in prices of vegetables after the nuclear accident in the Fukushima prefectureas compared to counterfactual estimates that included absence of perceived radiation risk. The effect on prices lasted for four years.…”

Section: Impacts Of the Disastersmentioning

confidence: 99%

Global agricultural trade impact of the 2011 triple disaster in Japan: A gravity approach*

Dadakas¹,

Tatsi²

2021

Aus J Agri & Res Econ

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We examine the evolution of global agricultural trade flows in the light of the 2011 earthquake, tsunami and nuclear accident in Fukushima, Japan. After the 2011 disasters, safety concerns led to the implementation of international surveillance measures on agricultural products from Japan. The physical damages, the domestic and foreign restrictions to production and trade, combined with actual and perceived health risks, affected consumer behaviour and reshaped production, consumption and trade. The existing literature has thoroughly examined individual sectoral effects, mainly through stylised facts and mainly for Japan; however, there is no analysis to date on the effects of the triple disaster on global trade flows of agriculture. With Japan holding 4.1 per cent of global exports of agricultural products and 0.4 per cent of global imports, transmission of the effects to global markets could lead to disruptions in global supply chains, worldwide distribution and trade. We use a gravity approach, together with 2000-2018 panel data and a Poisson Pseudo Maximum Likelihood (PPML) estimator to discuss the impact of the disasters on global trade flows of agriculture. Results for Japan indicate a negative effect on both exports and imports extending until 2014. Counterfactual analysis results suggest transmission of the negative effects to global exports of agricultural products.

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“…He found that most vegetables produced in Fukushima lost their value and share in the Tokyo market after the nuclear accident and that this trend worsened in the second year compared with the first. Recently, Tajima et al () conducted a hedonic regression analysis to assess the impact of the nuclear accident on fresh vegetable prices in the Tokyo wholesale market. They found that the price of vegetables grown in Fukushima prefecture decreased by 10–36% after the nuclear accident and that these price reductions persisted for three years thereafter.…”

Section: Literature Backgroundmentioning

confidence: 99%

“…The results of tests conducted by the Japanese government and non‐government organisations demonstrated that many agricultural products (including peaches, which are the focus of this paper) produced in the Fukushima prefecture were not contaminated by radiation. The results of these tests were published on government websites (MAFF, ) and the information was widely disseminated and discussed on public media channels including television, radio, newspapers, magazines and websites (Tajima et al , ). In addition, retailers also conducted independent surveys to examine food safety and reported the safety of Fukushima products (AEON, ).…”

Section: Introductionmentioning

confidence: 99%

“…Few studies have attempted to identify the observed reduction in the prices of several agricultural products due to reputation damage in the context of the Fukushima Daiichi nuclear accident (Aruga, ). For example, Tajima et al () report that the price of vegetables grown in Fukushima prefecture decreased by 10–36% after the nuclear accident and that such price reductions persisted for another three years thereafter. This study has two typical limitations.…”

Section: Introductionmentioning

confidence: 99%

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Economic Loss Due to Reputation Damage: A New Model and Its Application to Fukushima Peaches

Matsumoto¹,

Hoang²

2019

J Agricultural Economics

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Consumers have responded negatively to agricultural products originating from the Fukushima prefecture after the 2011 Fukushima Daiichi nuclear power plant incident. These consumers' behavioural changes have caused substantial economic losses for the producers located in contaminated regions through reductions in market prices, consumption quantities and market shares. Remarkably, these losses are observed also for uncontaminated products, posing an opportunity for research in reputation damage. However, existing literature is very rare on empirical modeling of such losses. We utilise the Dixit-Stiglitz demand framework to derive a simple but efficient empirical model that uses market data to quantify reputation damage. This model estimates changes in the perceived quality of a product originating in contaminated regions in relation to those products originating from other competing regions. The model also measures subsequent loss in market share for those products grown in contaminated regions. In our application to Fukushima, results suggest that consumers' valuation of peaches from Fukushima decreased dramatically (between 22.5% and 23.6%) in the year the nuclear accident occurred, but rapidly recovered in the following years. The results also show that the degree of impact varies across wholesale markets. Fukushima farmers lost about 13.1-18.9% of sales due to reputation damage. Estimates from our proposed models deliver meaningful information in the context of policy interventions such as transfer programmes financed by gainers to compensate reputation losses.

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How do agricultural markets respond to radiation risk? Evidence from the 2011 disaster in Japan

Cited by 13 publications

References 26 publications

The housing market reaction to the combustible cladding crisis: Safety or financial concerns?

The housing market reaction to the combustible cladding crisis: Safety or financial concerns?

Global agricultural trade impact of the 2011 triple disaster in Japan: A gravity approach*

Economic Loss Due to Reputation Damage: A New Model and Its Application to Fukushima Peaches

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