Nuclear power plant closures and local housing values : evidence from Fukushima and the German housing market
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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.
Bauer , T K , Braun , S T & Kvasnicka , M 2017 , ' Nuclear power plant closures and local housing values : evidence from Fukushima and the German housing market ' Journal of Urban Economics , vol. 99 , pp. 94-106 . DOI: 10.1016/j.jue.2017.02.002
Journal of Urban Economics
Elsevier Ltd. All rights reserved. This work has been made available online in accordance with the publisher’s policies. This is the author created, accepted version manuscript following peer review and may differ slightly from the final published version. The final published version of this work is available at https://doi.org/10.1016/j.jue.2017.02.002
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