Abstract
Summary 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 willingness to pay for increased insurance coverage against nuclear accidents (MWP C ) as well as on willingness to pay for solving the nuclear waste disposal problem (MWP W ). Using data from a discrete choice experiment conducted in Switzerland, we find evidence that MWP C values decrease with distance from plant once attitudes influencing choice of residential location are controlled for. However, distance from plant has no effect on MWP W values.
Highlights
The risks associated with nuclear power cause a great deal of debate in many countries
Hypotheses to Be Tested We focus on the effect of distance from nuclear power plants on marginal willingness to pay for (i) increased insurance coverage against accidents at nuclear power plants and (ii) for solving the nuclear waste disposal problem
This article investigates the effect of distance from nuclear power plants on Swiss citizens’ marginal willingness to pay for avoiding two particular risks from nuclear power: the risk of an accident at power plants, and the risk associated with nuclear waste disposal
Summary
The risks associated with nuclear power cause a great deal of debate in many countries. Turning to stated choice rather than market-based studies, Smith and Desvousges (1986) employ a contingent valuation study to analyze the impact of distance between respondents’ homes and land based disposal sites for hazardous wastes on the subjective value of these homes They obtain a positive distance gradient of USD 330–495 per mile. A study related to the present paper is by Riddel, Dwyer, and Shaw (2003), who estimate the effect of several planned nuclear waste transportation routes from power plants to the Yucca Mountain (Nevada) repository They find evidence that perceived risk decreases with distance to the planned transportation route and that higher perceived risk results in a higher probability of moving away from the route.
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