Cluster-Seminar Public Finances and Living Conditions

We study the impact of the Fukushima disaster on people's mental distress in another industrialized country, 5500 miles away. The meltdown significantly increased environmental concerns by 25% among the German population. Subsequent drastic policy action permanently shut down the oldest nuclear reactors, implemented the phase-out of the remaining ones, and proclaimed the transition to renewables. This energy policy turnaround was largely supported by the population and equalized the increase in mental distress. We fail to detect any significant long-term impact of Fukushima. However, we estimate that during the 3 months after the meltdown, Fukushima triggered external monetized health costs worth €250 per distressed citizen-particularly among risk averse women above 40.