This paper examines the role and possibility of wood biomass energy as a means of local revitalization. It also takes a view of strategy for diffusion. Although small local projects promoting wood biomass energy in the context of regional revitalization had been spread all over the country for the last 10 years, the market of wood biomass energy still remains very small. However, the Tohoku Earthquake on March 11, 2011 had changed the situation. Renewable energy including wood biomass energy suddenly became expected as an alternative to nuclear energy. In Europe, the promotion of renewable energy is an important tool for leading green economy and a new economic growth. It was especially found to be an important means of regional revitalization. Active participation of local people and development of social capital is necessary for local revitalization through promoting renewable energy including wood biomass energy. In terms of wood biomass energy, geographically distributed heat utilization will be a main objective in the short run. Developing local energy market and autonomous energy democracy is also necessary.

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This paper discusses the best mix of local production for local consumption, introduces an extensive distribution network, and clarifies how this contributes to the reconstruction of regional agriculture. The author took up a case study of Tsushima City, Nagasaki Prefecture, and approached this issue from the viewpoints of the actual situations of local production for local consumption and the shipment out of the island. Due to the decrease of shipments of agricultural and forestry products out of the island of Tsushima, they now remain on the island, and farmers' markets are thriving. As the islanders desire fresh agricultural products, the activities of supermarkets and farmers' markets of agricultural cooperatives responding to their desires make sense. However, due to the trend of declining population in Tsushima City, at a rate faster than national average, local distribution will become saturated at some time in the future and it is expected that competition will occur among these farmers' markets. In order to solve this problem, a two-front response of regional distribution and shipment to out of the island is necessary. Thus, local production for local consumption should be based upon a semi-open regionalism, not a completely closed one. Both demand and supply of agricultural products in Japan eventually will decrease. It is important to aim at local production for local consumption, but it should not be a primary concern. Large-scale farmers and agricultural production corporations have to seek diverse distribution strategies corresponding to export and demand for processing and food business as well as the domestic market. In other words, although the best mix of local production for local consumption and an extensive distribution network is a target, they are the results of economic activities as well.

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This paper examines the current interaction between urban and rural areas in Japan from two perspectives: (1) rural communities seeking collaboration with urban residents to find solutions to rural issues and (2) urban residents seeking collaboration with rural communities to find solutions to urban issues. This paper also outlines the distinguishing characteristics of Japanese-style green tourism, which is highly anticipated as a new method for revitalizing rural areas, and identifies the present significance of the interaction between urban and rural areas.

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