Effects on Water Environmental Measures by Introduction of Local Environmental Tax

A Comprehensive Evaluation by Environmental and Economic Model Simulation

Abstract

Local environment tax is imposed in some prefectures of Japan, for example, such as "Forest environment tax" in Kochi prefecture in 2003, and "Okayama Mori-dukuri Prefectural Tax" in Okayama prefecture in 2004. And other local governments are looking into the introduction of the taxation in recent years. The aim of this study is to analyze effects of introduction of local environment tax in Ibaraki prefecture. Ibaraki prefectural government makes a levy on residents as a tax that a local government may implement for a particular purpose, and the tax revenue is utilized for water environmental measures, which are construction of sewage system, installation of combined treatment septic tank, promotion of agriculture of environmental conservation type, etc. As a result of simulation analysis, local environment tax has changed expense for water environmental measures, and could reduce water pollutant inflow maintaining 1% regional economic growth.