A national real estate survey shows the NIMBY effect is widespread across America
Owners of casinos, landfills, and rock quarries may have something to learn from nuclear power plants. A new survey says most Americans would rather have nuclear power plant built in their community than a landfill, a casino, or even a rock or sand & gravel quarry. [Charts]
The NIMBY effect refers to the phenomenon of “Not IN My Back Yard” which involves the projection of illogical fears about risk with equal intensity on an odd mix that includes commercial real estate projects, rock quarries, casinos, nuclear power plants, and even Wall Mart.
The astonishing news comes from a recent survey on attitudes towards real estate of 1,000 Americans conducted by Saint Consulting of Hingham, Mass.
It should come as no surprise that, according to the annual survey, 78% of American adults oppose a landfill project in their community, and nearly as many oppose a casino (77%). An aggregate rock quarry is opposed by 62%. Only 60% oppose nuclear power plants giving them the lowest ranking on the survey's list.
Politics of power plant opposition
Opposition is down, and support up, for all types of power plant projects, including nuclear energy. A nuclear power plant is opposed by 60% of Americans, down from 65% a year ago. It explains why Progress Energy is locating its two new AP1000 reactors in rural Levy County, Fla., and why there is relatively little local opposition to them.
See this video for a deeper discussion of the politics of power plant opposition from a developer perspective. This year’s headline, Saint Group says,”is that it is still tough out there.” However, the numbers that support nuclear energy are a slight improvement. Even more startling is the support for nukes when compared to other types of development.
A nuclear power plant, while the least-favored type of power plant, would still be preferable as a local development project to a landfill, a casino, or an aggregate quarry, the survey results show.
Things are improving for wind energy investors with 43% of Americans supporting a local power project, up from just 23% in 2006. Wind power remains the top choice for a power plant among Americans if one were to be built near them (82% support).
Real estate takes it on the chin
Americans seem to be conflicted when it comes to new development. They want to economic benefits, but they don’t want to see what produces them from their backyards. A key finding of the Saint survey is that . . .
America’s opposition to local real estate development remains strong, with 74% of adults opposed to new development in their community, according to the Saint Index. And 78% of American adults oppose a landfill development in their hometown, making it the most unwanted type of local real estate project in America. A casino is the second most unwanted local project with 77% opposed.
If you take this juxtaposition of facts to its logical conclusion, 56% of Americans would oppose having a new Wall-Mart and 60% would oppose having a new nuclear power plant. It seems that America's illogical fears of spent nuclear fuel, and of the crowd that seeks out deep discount prices at the country's largest retailer, are equally matched.
The casino folks will be scratching their heads how they came out with a lower ranking, and higher loathing, than nuclear power plants.
Key reasons for opposition to a casino project are protecting the environment (22%) and protecting the value of a home or real estate (21%). Other reasons for opposition include fear of too much new traffic (19%) and protecting community character (18%). All of these factors, and their numbers, are comparable to opposition to power plants or large retail developments.
Wind energy preferred over Wall-Mart
Wall Mart also ranks high as the least desired type of shopping mall development homeowners would want to see in their neighborhoods. According to the Saint Survey, “Wall-Mart this year fell into a tie with a mall or large shopping center as the most opposed local retail development project. Both types of development are opposed by 56% of adults for their community.” What Saint says is that Wall-Mart is no longer alone as one of the top most reviled large-scale types of real estate developments.
Opposition to Wall-Mart actually fell by a few points from the survey results recorded last year. This may reflect the fact that more people are seeking out “falling prices” due to the deteriorating economic conditions in the U.S.
Like many Americans, I also shop at Wall-Mart because the prices are so low, but also, like many Americans, I am disturbed by some of their business practices when it comes to how they treat their employees. The social safety net of the nation is torn in many places. Wal-Mart, for better or worse, has become a touchstone for perceptions of what’s wrong with health care coverage and the lack of it for some many people.
This doesn’t make the company an “evil empire,” but the fact that some people make this comparison, even if unjustified, shows what happens when public perceptions start moving in wrong direction relative to the preferred path for a firm’s brand image. Nuclear power plant operators in Vermont and New York take note.
Lessons for Vermont Yankee and Indian Point
There are astonishing parallels between unreasonable public perceptions of Wall-Mart and remarkably strong public aversion to the continued operation of the Vermont Yankee and Indian Point nuclear power plants even though safety was never at risk at either plant. All it took at Vermont Yankee was one bad picture in 2007 to unravel years of community support. Opposition at Indian Point boiled over when the plant couldn’t make its low-tech emergency sirens work in 2008.
Things are turning around at Indian Point where the plant owner committed to implementing $100 million worth of plant and safety improvements following recommendations from an independent committee of nuclear energy experts and orders from the NRC. Things are moving more slowly at Vermont Yankee. Last July the NRC sent top-level nuclear engineers to review Vermont Yankee’s operations and recommend improvements. Public opposition to relicensing the plant by 2012 remains off the charts.
The lesson learned here is that Americans are slow to warm up to new development and easily turned into unreasonable and even malicious opponents of new development if they think think their homes and communities are at risk even if they aren’t. Here’s another example. People complain about dropped cell phone signals, but turn out in droves to oppose new cell phone towers in their towns. Go figure.
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The Saint Consulting Group has been doing its annual survey for years, and the firm has been in business since 1983. It has done similar surveys in the UK and Canada. Check the firm’s website for additional details.
Update - Hat tip to Rod Adams at Atomic Insights who has another perspective on the Saint Consulting Group based on report from Forbes Magazine called Nimby Wars
Prior coverage of risk perception
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