Understanding Households’ Perceptions Regarding the Effect of a Natech Accident on Residential Property Values: The Case of Ichihara City

Abstract

This research investigated households’ perceptions concerning the effects of a natural hazard-triggered chemical accident (known as a Natech) on residential property values in Ichihara city, Japan, where a Natech accident occurred in 2011 following the Great East Japan earthquake and tsunami. Furthermore, the household survey investigated households’ perceptions regarding the effect that the disclosure of risk information concerning potential chemical and Natech accidents on future property values. Data was collected through a stratified random survey of households within three kilometers of the Chiba industrial park in Ichihara City, Japan, where the Natech accident occurred. The household survey findings indicate that the respondents felt that the land price did not decline due to the Natech accident in 2011. However, they consider chemical and Natech accidents a threat to their lives and property. They are concerned that chemical accidents alone or triggered by natural hazards may happen again at the Chiba industrial park and about the potential for the accidents to decline property values in the future. The results also showed that respondents want the government to disclose chemical risk information, but they are also concerned that the disclosure will affect future property values. The study results have implications on Natech risk governance at the community and industry level. The survey results highlighted the need to develop risk communication strategies taking into consideration households concerns, and finding ways to counterbalance the negative effects that the disclosure of risk information may have.