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Dreams of urbanization: Quantitative case studies on the local impacts of nuclear power facilities using the synthetic control method

Michihito Ando

Journal of Urban Economics, 2015, vol. 85, issue C, 68-85

Abstract: This paper uses the synthetic control (SC) method to examine how the establishment of nuclear power facilities (NPFs) in Japan in the 1970s and 1980s has affected local per capita income levels in the municipalities in which they were localted (NPF municipalities). Eight quantitative case studies using the SC method clarify that the effects of NPF establishment on per capita taxable income levels are highly heterogeneous. The estimated effects are often economically meaningful and in some cases huge: the income level was 11% higher on average and 62% higher in one municipality in 2002 when compared with counterfactual units. On the other hand a few of the NPF municipalities have received only weak or negligible effects from NPF establishment. The post-estimation comparisons of employment between the NPF municipalities and the SC units suggest that the size of the direct labor demand shocks and subsequent indirect employment effects on nontradable service sectors have contributed to the increase in per capita income levels.

Keywords: Local income growth; Local employment; Nuclear power facilities; Synthetic control method; Quantitative case study (search for similar items in EconPapers)
JEL-codes: H71 O18 R38 R53 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (53)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:85:y:2015:i:c:p:68-85

DOI: 10.1016/j.jue.2014.10.005

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