ISSN 1936-5349 (print) ISSN 1936-5357 (online) HARVARD JOHN M. OLIN CENTER FOR LAW, ECONOMICS, AND BUSINESS NUCLEAR REACTORS IN JAPAN: WHO ASKS FOR THEM, WHAT DO THEY DO? J. Mark Ramseyer Discussion Paper No. 909 06/2017 Harvard Law School Cambridge, MA 02138 This paper can be downloaded without charge from: The Harvard John M. Olin Discussion Paper Series: http://www.law.harvard.edu/programs/olin_center/ The Social Science Research Network Electronic Paper Collection: http://ssrn.com/abstract=2986410 Draft of June 1, 2017 JEL: H84, I38, J12, K32, L32, L94 Address correspondence to: J. Mark Ramseyer Harvard Law School
[email protected] Nuclear Reactors in Japan: Who Asks for Them, What Do They Do? By J. Mark Ramseyer* Abstract: Japanese communities with nuclear reactors have them because they applied for them, and they applied for them for the money. Among Japanese municipalities, they were some of the most dysfunctional before the reactors had even arrived. These were the villages that had long fought for targeted subsidies, but ignored infrastructural investments. Subsidies operate as a regressive tax on out-migration, of course, and the lack of private-sector infrastructure reduces the returns to high-value human capital. As a result, these were the villages from which the most talented young people had begun to disappear -- even before the reactors arrived. After the communities built the reactors, talented young people continued to leave. Unemployment rose. Divorce rates climbed. And in time, the communities had little other than reactor- revenue on which to rely. * Mitsubishi Professor of Japanese Legal Studies, Harvard University.