Estimate of Amount of Administrative Investment Necessary for Maintaining and Updating Infrastracture of Japan

Abstract

This paper conducts a simulation to estimate the administrative investment necessary for maintaining the infrastructure stocks of present-day Japan.

The infrastructure that was analyzed comprised four fields-roads, water services, drainage, and trash disposal facilities. The following three kinds of analyses were simulated.

First, the amount of administrative investment necessary to maintain the infrastructure stocks of present-day Japan was estimated. Second, by taking into account the change in the future population of Japan, the administrative investment necessary to maintain infrastructure stocks per capita was estimated. Finally, the administrative investment necessary to introduce Private Finance Initiative (PFI) and maintain the infrastructure stock of present-day Japan was estimated.

An amount greater than the current administrative investment is necessary for the maintenance of the drainage and trash disposal facilities at their current levels. Therefore, the maintenance of infrastructure stocks is regarded as a problem of paramount importance.