Measuring nuclear power plant externalities using life satisfaction data: A spatial analysis for Switzerland

- We study the relationship between life satisfaction and the distance from nuclear plants.
- We find a statistically and economically significant satisfaction-distance gradient.
- The gradient varies with prevailing meteorological and topographical conditions.
- The gradient has changed significantly after the Fukushima nuclear disaster.

We investigate the relationship between Swiss citizens' life satisfaction (understood as a proxy of utility) and the distance of their place of residence from the nearest nuclear power plant. Using survey data for up to 12,264 Swiss citizens, elicited in February-August 2011, and several specifications of distance, we find a statistically and economically significant satisfaction-distance gradient. The gradient is smaller for those who may feel protected by wind direction and topographical conditions, and it differs by age, sex, and the level of education. The satisfaction-distance gradient has changed significantly after the nuclear disaster at Fukushima, Japan, indicating a reassessment of distance-dependent nuclear risk due to an information shock.