Do Radioactive Spills from the Fukushima Disaster Have any Influence on Seafood Market in Japan?

Wakamatsu, Hiroki and Miyata, Tsutomu (2014): Do Radioactive Spills from the Fukushima Disaster Have any Influence on Seafood Market in Japan?

Abstract

We investigated whether the spill of radioactive materials from the Fukushima nuclear plant into the Pacific Ocean had a negative impact on demand for cod and pollock in wholesale markets in Japan. A structural break test detected several break points in the market, including the Fukushima disaster, and successfully eliminated the impact of the other disturbing shocks identified in our analysis. A system of demand equations model which has taken into account the structural breaks indicated that the radioactive spills had a significantly negative impact on demand for cod. Our results suggested that the amount of radiation detected in cod products negatively affected Japanese demand for cod and positively affected demand for pollock, while it did not affect its price. We also found that consumers’ current concerns about radioactive spills positively affect cod and pollock markets. We concluded that radioactive spills harm the markets, but the impact is almost negligible.

• Item Type: MPRA Paper
• Language: English
• Keywords: Radioactive Spill; Structural Break Test; Japanese Seafood Market; Demand Analysis
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C32 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes ; State Space Models; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q13 - Agricultural Markets and Marketing ; Cooperatives ; Agribusiness; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q22 - Fishery ; Aquaculture; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q53 - Air Pollution ; Water Pollution ; Noise ; Hazardous Waste ; Solid Waste ; Recycling

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