2020 Volume 38 Issue 4 Pages 477-485
This study aims to illustrate the potential of Social Impact Bonds (SIB)—a strategy in which private investors fund implementation and receive a return on investment from a government payer—using public transportation as an example. SIB was introduced in two Japanese cities, Kobe and Hachioji. In both places, a survey was conducted by the Social Impact Investment Foundation, which was involved in the formation of SIB as an intermediate support organization.
Based on the survey, it was inferred that the introduction of SIB in the public transport sector is necessary for the following reasons: feasibility of SIB, expansion potential of the SIB market, and high relevance of SIB to the administration. It was found that the intermediate support organization mainly helped in the formation and introduction of SIB. It was also understood that administrative support is necessary at an unprecedented stage of introduction.
Consequently, evaluation indicators and reduction targets were set for each target project, and a scheme was proposed for community-based transport services.
