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Impact of the Great East Japan Earthquake on the oyster market: a difference-in-differences estimation

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Abstract

This paper uses prefecture-level data during 1970–2015 to examine the impact of the Great East Japan Earthquake on the oyster market in Japan. Using a difference-in-differences estimation, we find that the disaster decreased the oyster production by 65%. This negative effect peaked in 2012, but did not completely disappear 4 years after the disaster. In contrast, we find that oyster prices only increased by 26%, and the parameter estimate is only marginally significant. Moreover, this impact is relatively constant over time. The apparent lack of price changes corresponding to large production changes can be caused by three factors: elastic demand, market integration, and demand shocks. We examine each possibility and conclude that the demand shocks due to the concern for radioactive contamination is the most likely cause of the small impact on oyster prices.

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Acknowledgements

We are grateful to Hikaru Oikawa for his excellent research assistance. This research is funded by Japans Agriculture, Forestry and Fisheries Council as part of a project for developing research on reforming the production system in fisheries and aquaculture.

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Authors and Affiliations

  1. School of Sustainability, Arizona State University, Tempe, AZ, 85287-5502, USA

    Yutaro Sakai

  2. Japan Fisheries Research and Education Agency, National Research Institute of Fisheries Science, Fukuura, Kanazawa, Yokohama, 236-8648, Japan

    Hiroki Wakamatsu & Tsutom Miyata

Authors
  1. Yutaro Sakai
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  2. Hiroki Wakamatsu
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  3. Tsutom Miyata
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Correspondence to Yutaro Sakai.

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Sakai, Y., Wakamatsu, H. & Miyata, T. Impact of the Great East Japan Earthquake on the oyster market: a difference-in-differences estimation. Fish Sci 84, 1109–1118 (2018). https://doi.org/10.1007/s12562-018-1240-3

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  • DOI: https://doi.org/10.1007/s12562-018-1240-3

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