Spatial effects in willingness to pay for avoiding nuclear risks

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.