Evaluating production effects of economic activity in zones surrounding the nuclear power station in Shizuoka Prefecture, Japan

Abstract

We examine the production effects of economic activity in zones surrounding the Hamaoka nuclear power station in Shizuoka Prefecture before and after a natural disaster interrupts its operations. Using a regional input–output model and GIS employment data for Shizuoka Prefecture, we incorporate a hypothetical extraction method into the regional input–output framework. We then calculate impacts via backward and forward linkages among increasingly larger zones. We derive and compare density functions of effects transmitted via backward and forward linkages and assess economic implications for zones surrounding the nuclear plant. Results indicate that a production stoppage within zones generates large indirect negative effects on the regional economy. Our results suggest that disaster prevention and recovery policies consider industrial structures and their economic implications in zones surrounding nuclear plants. Our area-based approach is useful in evaluating the economic impacts of nuclear plants and analyzing economic losses from natural disasters in specific areas.