Construction of the Hokkaido Shinkansen Using Residential Local Government Bond

Abstract

The construction of Hokkaido Shinkansen between Shin Aomori and Shin Hakodate was started in May, 2005. People in Hokkaido hope that Shinkansen is extended to Sapporo, on the other hand, Hokkaido prefectural government must secure revenue efficiently and steadly. This study proposes to apply residential local government bond for the construction of the Hokkaido Shinkansen. It analyzed people's awareness of investment in Hokkaido Shinkansen by Orthogonal Multi-attribute Utility Function and clarified appropriate condition of bond from the viewpoint of reducing costs.