Abstract
Japan faces great risks of natural disasters, and it is important to make resilient national land as well as economic and social systems. However, the development of disaster prevention infrastructures has not progressed sufficiently due to the lack of financial resources. Even though there are methods of using private funds to construct, maintain, and operate public facilities, such as PFI, they are seldom applied for the development of disaster prevention infrastructures. One of the reasons for this is the difficulty to arrange business structures which convert the value of disaster prevention into the provider’s profit, which is in contrast to other types of projects such as airport facilities and public housing. Therefore, in this research, referring to past efforts, we proposed to introduce the PFS (Pay For Success) system, which has been introduced in the social welfare field in Japan as “Social Impact Bond” etc., to the field of investment in development of infrastructure for disaster prevention. By applying this method, the government can return a part of the benefit of damage reduction to the private sector that undertakes infrastructure business. After that, the advantages of introducing the PFS mechanism for disaster prevention infrastructure investment and the problems to be solved for its introduction are discussed.
