Measuring nuclear power plant externalities using life satisfaction data: A spatial analysis for Switzerland

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractConceptualizing externalities from perceived nuclear risk as being related to distance from nuclear facilities, we estimate the relationship between Swiss citizens' life satisfaction (understood as a proxy of utility) and the distance of their place of residence from the nearest nuclear power plant. Controlling for a rich set of life satisfaction factors, we find a statistically and economically significant satisfaction-distance gradient, whose monetary value amounts to CHF 291 per kilometer of distance, on average. The gradient is smaller for those who may feel protected by wind direction and topographical conditions, and it differs by age, sex, and the level of education. The satisfaction-distance gradient has changed significantly after the nuclear disaster at Fukushima, Japan, indicating a reassessment of distance-dependent nuclear risk. We find no evidence of hedonic locational equilibrium with respect to nuclear risk.

Electricity Externalities, Siting, and the Energy Mix: A Survey

“…Differentiating their analysis by distance from the nearest nuclear plant, Goebel et al (2013) found that those results apply equally to individuals within a 50km radius from the nearest plant and individuals outside that radius. Welsch and Biermann (2016) found that the satisfaction-distance relationship in Switzerland changed significantly after the Fukushima disaster. In particular, life satisfaction of individuals whose nearest nuclear plant was at an intermediate distance (40-85 km) dropped, which the authors take to indicate that, due to an information shock provided by the spatial extent of the Fukushima event, individuals at places previously considered safe reassessed distance-dependent expectations of potential damage size.…”

“…The main result is that stated willingness to pay for increased insurance coverage against nuclear accidents decreases with distance from plant once attitudes influencing choice of residential location are controlled for. Welsch and Biermann (2016) applied the experienced preference method, also focusing on Switzerland. They investigated the relationship between Swiss citizens' life satisfaction and the distance of their place of residence from the nearest nuclear power plant and found a statistically and economically significant satisfaction-distance gradient.…”

Climate Change–Related Heat Stress and Subjective Well-Being in Australia

“…Life satisfaction has also been used as a proxy for experienced utility in approaches that monetarize the impacts of natural hazards (e.g., Luechinger and Raschky 2009) with natural disasters causing a welfare loss (called the lifesatisfaction approach; see Welsch 2007).…”

An exploration of public risk perception and governmental engagement of nuclear energy in India

“…According to Pearce (2001), an externality is a consequence (either positive or negative) generated by an economic activity and imposed on third parties where the impacts cannot be priced. Public perception of nuclear energy has been always influenced by the effects of externalities (Folland & Hough, 2000;OECD, 2003;Welsch & Biermann, 2016).…”