Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/76211
Authors: 
Zweifel, Peter
Schneider, Yves
Wyss, Christian
Year of Publication: 
2007
Series/Report no.: 
Working Paper, Socioeconomic Institute, University of Zurich 0502
Abstract: 
This paper examines the spatial dimension of marginal willingness to pay (MWP) for reduction of nuclear risks through increased insurance coverage. The effect of distance from a nuclear power plant on individuals' MWP is ambiguous. MWP is expected to decrease with distance because the risk of being affected by an accident decreases. However, if individuals choose their residential location taking the operational risk into account, MWP is predicted to first increase and later decrease with distance from the nuclear power plant. On the other hand, there are risks associated with transportation and disposal of nuclear waste where distance should matter only in the vicinity of the plant. These theoretical predictions are tested with data collected using a stated choice experiment. The predictions are largely confirmed by the evidence.
Subjects: 
discrete-choice experiment
liability insurance
nuclear accident
willingness to pay
JEL: 
C25
K13
L94
Document Type: 
Working Paper

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