Abstract
New ideas must be implemented to slow the progress of severe global environment problems. Especially, a new system to alter behaviors of respective economic and environmental actors is highly anticipated. Because decentralization continues to devolve power from the national government to local municipalities, appropriate systems are necessary for governments to fulfill their responsibilities with decision making related to global environment problems. This study proposes the basic idea that municipalities should maintain environmental balance in each territory by their own efforts. Therefore, municipalities' finances and merging should be evaluated according to a balance index. The Ecological Footprint index is introduced for this evaluation to examine how territories and finances are affected by such a system. Application of this system to 44 municipalities in Ibaraki prefecture reveals 16 balanced areas and 10 unbalanced areas.
