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Spatial Effects in Willingness to Pay for Avoiding Nuclear Risks

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  • Yves Schneider
  • Peter Zweifel

Abstract

How to deal with the risks associated with nuclear energy is a major policy issue. This paper investigates the effect of an individual's distance from nuclear power plants on its willingness to pay for increased insurance coverage against nuclear accidents (MWPC) as well as on willingness to pay for solving the nuclear waste disposal problem (MWPW). Using data from a discrete choice experiment conducted in Switzerland, we find evidence that MWPC values decrease with distance from plant once attitudes influencing choice of residential location are controlled for. However, distance from plant has no effect on MWPW values.

Suggested Citation

  • Yves Schneider & Peter Zweifel, 2013. "Spatial Effects in Willingness to Pay for Avoiding Nuclear Risks," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 149(III), pages 357-379, September.
    • Handle: RePEc:ses:arsjes:2013-iii-3
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    Cited by:

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    2. Welsch, Heinz & Biermann, Philipp, 2016. "Measuring nuclear power plant externalities using life satisfaction data: A spatial analysis for Switzerland," Ecological Economics, Elsevier, vol. 126(C), pages 98-111.
    3. Song, Jinbo & Nie, Rong & Yuan, Hehui & Gao, Jingxin, 2023. "Does the renovation of waste-to-energy incineration plants attenuate the housing price gradient? Evidence from a quasi-natural experiment in Shenzhen, China," Energy Economics, Elsevier, vol. 120(C).
    4. Peter Zweifel, 2020. "The COVID‐19 crisis: A public choice view," Economic Affairs, Wiley Blackwell, vol. 40(3), pages 395-405, October.
    5. Welsch, Heinz, 2016. "Electricity Externalities, Siting, and the Energy Mix: A Survey," International Review of Environmental and Resource Economics, now publishers, vol. 10(1), pages 57-94, November.
    6. Branden B. Johnson, 2018. "Residential Location and Psychological Distance in Americans’ Risk Views and Behavioral Intentions Regarding Zika Virus," Risk Analysis, John Wiley & Sons, vol. 38(12), pages 2561-2579, December.
    7. Contu, Davide & Strazzera, Elisabetta, 2022. "Testing for saliency-led choice behavior in discrete choice modeling: An application in the context of preferences towards nuclear energy in Italy," Journal of choice modelling, Elsevier, vol. 44(C).

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    More about this item

    Keywords

    discrete choice experiment; liability insurance; nuclear accident; willingness to pay;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments

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