Institute for Economic Studies, Keio University


Public Preferences for Alternative Electricity Mixes in Post-Fukushima Japan

Katrin Rehdanz, Carsten Schröder, Daiju Narita, Toshihiro Okubo


JEL Classification codes : D12, Q40, Q42

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[ Abstract ]

Using representative household survey data from Japan after the Fukushima accident, we estimate peoples’ willingness-to-pay (WTP) for renewable, nuclear, and fossil fuels in electricity generation. We rely on random parameter econometric techniques to capture various degrees of heterogeneity between the respondents, and use detailed regional information to assess how WTP varies with the distance to both the nearest nuclear power plant and to Fukushima. Compared to fossil fuels, we find a positive WTP for renewable and a negative WTP for nuclear fuels. These effects, in absolute terms, increase with the proximity to Fukushima.