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How do agricultural markets respond to radiation risk? Evidence from the 2011 disaster in Japan

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  • Tajima, Kayo
  • Yamamoto, Masashi
  • Ichinose, Daisuke
Abstract
Since the explosion of the Fukushima Daiichi Nuclear Power Plant in March 2011, public anxiety surrounding the radioactive contamination of food and the environment has become widespread. This article examines how vegetable prices in the Tokyo Metropolitan Central Wholesale Market were affected in the wake of the nuclear accident. This study exploits the quasi-experimental condition generated by this accident to test market price changes using monthly panel data on the price of six types of fresh vegetables from each of the 47 prefectures in Japan. Our estimation results show that the prices of vegetables grown in Fukushima Prefecture decreased by 10–36% after the disaster compared with the counter-factual estimates in the absence of a perceived radiation risk. This effect has persisted even after radioactive detection tests showed negative results in subsequent years. The consumer behavior of avoiding vegetables from Fukushima and instead buying vegetables grown in other areas may explain the price gap.

Suggested Citation

  • Tajima, Kayo & Yamamoto, Masashi & Ichinose, Daisuke, 2016. "How do agricultural markets respond to radiation risk? Evidence from the 2011 disaster in Japan," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 20-30.
    • Handle: RePEc:eee:regeco:v:60:y:2016:i:c:p:20-30
    DOI: 10.1016/j.regsciurbeco.2016.06.004
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    2. Thais Waideman Niquito & Fernando Pozzobon & Vinícius Halmenschlager & Felipe Garcia Ribeiro, 2021. "Human-made disasters and economic impact for a developing economy: evidence from Brazil," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 109(3), pages 2313-2341, December.
    3. Kawaguchi, Daiji & Yukutake, Norifumi, 2017. "Estimating the residential land damage of the Fukushima nuclear accident," Journal of Urban Economics, Elsevier, vol. 99(C), pages 148-160.
    4. Daniel Melser, 2023. "The housing market reaction to the combustible cladding crisis: Safety or financial concerns?," Urban Studies, Urban Studies Journal Limited, vol. 60(4), pages 620-637, March.
    5. Shigeru Matsumoto & Viet Ngu Hoang, 2018. "How is internal radiation exposure risk evaluated at the markets? Perceived quality degradation of Fukushima peach," Working Papers e122, Tokyo Center for Economic Research.
    6. Dang, Jingqi & Xu, Wei, 2018. "The Impact of Product-Harm Crisis on International Trade:Evidence from the 2008 Dairy Scandal in China," 2018 Annual Meeting, August 5-7, Washington, D.C. 273915, Agricultural and Applied Economics Association.
    7. Shigeru Matsumoto & Viet‐Ngu Hoang, 2020. "Economic Loss Due to Reputation Damage: A New Model and Its Application to Fukushima Peaches," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(2), pages 581-600, June.
    8. Yuichi Ishimura & Kenji Takeuchi & Fredrik Carlsson, 2021. "Why do municipalities accept disaster waste? Evidence from the great east Japan earthquake," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(2), pages 275-308, April.
    9. Dimitrios Dadakas & Stavroula Tatsi, 2021. "Global agricultural trade impact of the 2011 triple disaster in Japan: A gravity approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(4), pages 937-972, October.
    10. Garz, Marcel, 2018. "Effects of unemployment news on economic perceptions – Evidence from German Federal States," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 172-190.

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    More about this item

    Keywords

    Food safety; Hedonic pricing; Panel data estimation; Fukushima; Tokyo;
    All these keywords.

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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