Preface Sample

Over the past decade, it has become increasingly difficult for electric utilities to receive timely approval of new nuclear generating facilities.  In part, siting difficulties arise because of strong opposition to nuclear plants by some citizens who perceive that such plants pose threats to health and safety.  If many people hold such views, it seems logical to expect that people would not choose to live in communities near such plants and that, as a consequence, residential property values would decline and economic growth would be adversely affected.

Information about the extend to which society holds such fears about health and safety would enable utilities and government agencies to make better-informed siting decisions.  This study aims to supply some of this information.

No economically sound research has been conducted to examine the effects of nuclear generating plants on surrounding property values.  Accordingly, the objectives of this research are twofold:

  1. To ascertain whether, over time, nuclear generating plants have adversely affected the growth of the towns or communities in which they are located.
  2. To determine the effects of nuclear generating plants on the market values of residential properties.

The authors wish to acknowledge the assistance provided by the many local tax assessors and other local and state officials who cooperated so generously with us in providing the data.  We also wish to thank the Plymouth Country, Massachusetts, multiple-listing service for making their files available.  We are grateful to Howard Hester.  Daniel Huegel, and Kathy Philips of the Institute of Land and Water Resources for the time they spent collecting, processing, and coding the data.

Prepared by: Division of Health, Siting and Waste Management

Descriptive and Informative Abstract

Example of Descriptive Abstract

This study tested the hypothesis that nuclear power plants adversely affect community growth and residential property values in nearby municipalities.  Total assessed real property values from 1960 to 1976 for 64 municipalities and market sales data from 1975 to 1977 on 540 single-family dwellings formed the data base.  The data were for residential property within 20 miles of four nuclear power plants in the northeastern United States: Pilgrim in Massachusetts, Millstone in Connecticut, Oyster Creek in New Jersey, and R.E. Ginna in New York.

Example of Informative Abstract

This study tested the hypothesis that nuclear power plants adversely affect community growth and residential property values in nearby municipalities.  Total assessed real property values from 1960 to 1976 for 64 municipalities and market sales data from 1975 to 1977 on 540 single-family dwellings formed the data base.  The data were for residential property within 20 miles for four nuclear power plants in the northeastern United States: Pilgrim in Massachusetts, Millstone in Conneticut, Oyster Creek in New Jersey and R.E. Ginna in New York.

Analysis of the time series data showed that the average annual growth rates of total assessed values, in real terms, were inversely related to distances from the plants, and that growth in sales for the years following plant construction were higher than for the years before plant construction, with the largest growth rate observed in the host municipalities.  Multiple regression analysis of the cross-section data explained about 80% of the variation in housing prices.  The plants exerted no influence on the price of housing, so the original hypothesis is rejected.  Most people in the areas studied apparently have little fear over plant-related health and safety factors, and the presence of a plant does not in itself influence residential location decisions.  Lower tax rates in host municipalities may even encourage development.

Prepared by: Division of Health, Siting and Waste Management,  Office of Nuclear Regulatory Research.