We present an input-output model which determines the optimal level of economic activities and their optimal emission of air pollutants so as to maximizes the welfare function being subject to the emission standards of the air pollutants with respect to the emission taxes. By making the emission standards strict step by step, we analyze the feasibility and implementability of the reduction scenario by the numerical simulations. We also analyze impact of assumed technological progress in the air pollutant abatement activities on the feasibility of scenarios. In this paper, it is argued that even if the emission taxes are introduced so as to reflect the social cost of the air pollutants, it has potential to increase the GNP and the welfare. However, the cost of reduction in the emission of air pollutants in terms of GNP is large and the welfare rapidly decreases less than generally tolerable level as the reduction rate increases, at least in the short run. We formulate a model of the total environmental economic system which controls the air pollutants emitted by not only industries but also households. The fundamental of the model is the non-linear dual system of the input-output analysis. The model is applied to the Japanese economy in 1995. Thirty two industries are distinguished, and three types of pollutants, CO2, SOx and NOx are analyzed. From this research, we obtain that, to achieve a great abatement of emission like made in the Kyoto Protocol, the technological progress in the abatement industries is an important key factor. A fairly large amount of R & D investment into the abatement technology and related sciences will more pay than ever thought generally. And, to reduce the air pollutants emission by 15% less than the actual level in 1995 should have been a fairly strict goal at least in the short run. To consider other sources of the gases, it is almost in feasible unless the abatement technology progresses rapidly.
This study focuses on the measurement of the utility of the household within the urbaneconomic model of household location choice. We also show applications of the results of the model. We consider the basic model in which the utility function of the household is specied with respect to the lot size of house, the amount of composite consumer good and the leisure time. In this basic model, we assume that the family structure of the household is only characterized by working members and dependent members, and each household earns dierent income. Therefore we expand the basic model by adding two factors; the family structure of the household and the income levels. Firstly we consider two factors individually. From the viewpoint of income levels, we show that households with higher income have a larger elasticity of time than those with lower income. From the viewpoint of the family structure of the household, we show that the utility of the working member who lives near the CBD is higher than that of working member who lives in the suburbs, and that the distribution of utility of the dependent members shows the opposite pattern. Secondly, we combine the two factors. For those in the higher income level, the utility of the household near the CBD is larger than that of these in the suburbs. In the lower income level, household utility shows the opposite pattern. Next, we consider applying the results of the model to the real world. If the location of the household is in equilibrium in the real world, the utility of the household should be same across all cities. That is to say, we consider that there are external factors (except the lot size of the house, the amount of composite consumer good and the leisure time) which compensate for the dierences across cities. We guess these external factors to be the subjective image of the city, the sewerage service ratio and the number of stores per area feasible for daily consumption.
Electric power is one of the most important resources that supply not only the final demand of an economy but also the intermediate inputs to various industries. In many developing countries, power development is one of the major development objectives, and planning and appraising power projects constitute one major field of development assistance extended by international and bilateral donor agencies. It is easily envisaged that improved power supply in quantity and quality has significant impacts on the economy. Since industries use power as their primary input, the repercussions of improved power supply should vary depending on the industrial structures and linkages of the economy. However, the conventional methods of economic appraisal for power projects do not have the mechanism that could explicitly assess the repercussions that the different industrial structures and linkages would influence. Because it is important to identify economic costs and benefits based on the repercussions in developing countries, this paper proposes an alternative method of economic appraisal for power projects. The alternative method employs the semi-input-output (SIO) framework, which would be able to reflect the different industrial structures and linkages in the appraisal, and assess the indirect impacts explicitly. The semi-input-output model is known as a cost-benefit version of input-output model. The original purpose of the model was to assess comparative advantages of tradable sectors. However, because the power sector is a non-tradable sector, it is impossible to directly apply the SIO framework to the power sector. This paper, therefore, first estimates the increase in total outputs during the construction and operation periods, and then applies the SIO framework to the estimated increase in total outputs. Thus, the indirect impacts of a power project could be explicity assessed. Finally, the results of economic appraisal of a hydropower development project on Sumatra Island in Indonesia will be reviewed, so that the advantages using the proposed model could be made clear. At the same time, some limitations that have to be improved to employ the SIO framework in a more practical situation will be pointed out for further studies.
The main purpose of this paper is to describe the “Tokyo Metropolitan Interregional Input-Output Table for 1993” (TMIIOT). TMIIOT has been complied for assessing the economic function of Tokyo megalopolis in Japanese economy based on the framework of input-output analysis. It is essential to split out the process of production regarded as a single production sector in the conventional model, so that it correctly reflects the interregional division of production activities within enterprises. In the framework of TMIIOT, each conventional sector is devised into several sub-sectors and then each secondary sector is consisted of the head offices. Such features of TMIIOT are reflected on the framework, which is applied to the interregional input-output system between two regions, the Tokyo Metropolitan Area (TMA) and the rest of Japan. The most detailed table, which is called the basic table (1990), has a huge transaction matrix: 607 (row) × 491 (column) intermediate sectors for TMA, and 595 (row) × 479 (column) for the rest of Japan. The half of them represents indirect production sector consisted of head officies. TMIIOT (1993) shows the magnitude of direct interregional interdependence formed through production activities of two regions. We shows the overall structure of two regions as observed from TMIIOT (1993). We found the following facts by comparing the Input-Output Table of these two regions. (1) The total regional output in Tokyo is 147.7 trillion yen. It's proportion to the total domestic output of Japan is more than 14.0%, while the proportion of population of Tokyo is approximately 15.7%. The difference between these proportions characterizes the Tokyo economy. (2) The value added induced in Tokyo is estimated at 83.4 trillion yen, of which proportion to the total of Japan is 17.0%. This proportion is clearly higher than that of population of Tokyo mentioned above. It is also the characteristic feature of Tokyo economy. (3) Tokyo has the large amount of final demand, 44.3 trillion yen. However, its amount is smaller than the value added, 56.1 trillion yen. The excess of value added over final demand in Tokyo means the net income transfer from Tokyo to the other.
In this paper, we examine the optimization behavior of comsumers in a Deposit-Refund System from an economic point of view. It is usually considered that if some kind of deposit-refund system is introduced into a market of drinks in cans at community, the consumers will reduce the consumption of the drink and increase the recycle of the cans. These explanations are based on the facts that the prices of the drinks rise, and the profit of consumers can be increased by recycles. However, if the consumers maximize not only their utilitis but allso their profits (=revenues-costs), they will not reduce the consumption of the drinks, because the total incomes (=income+profits) of the consumers are not changed even after the introduction of a deposit-refund system. In other words, the deposits of the drinks are returned as the refunds of cans. However, even if all the deposits are returned to the consumers, the consumers will not consume the same volume of drinks as when no deposit is imposed, because the consumers must pay the costs of recycling. The conclusion is that the introduction of a deposit-refund system will promote the recycling activities, but the activities will stop in a while as the costs of recycling activities exceed the revenues from the refund of cans.
At the city center of Fukuoka City, a core city of Northern part of Kyushu island in Japan, large-scale retail developments have completed one after another within two years of 1996 to 1998. They include openings of two new department stores and one new large commercial complex, and one enlargement of shop-floor area of an existing department. As a result, the total increase of shop-floor area becomes 13.4 ha. If restricted to the central commercial district of “Tenjin”, the total shop-floor space of the department stores has drastically been expanded to 2.7 times the previous one. Such a rush of large-scale retail developments is quite a rare event. Thus the case of Fukuoka City gives a valuable occasion to investigate the effect of redevelopment on the structure of city center since, to our knowledge, few empirical research has been carried out to identify the effect of redevelopment based on a behavioristic standpoint. This study has conducted three on-site surveys on consumer's shop-around behavior before and after the actual developments at the city center of Fukuoka, and identified their effect on the structure of city center as the change of consumer's shop-around behavior between retail establishments using Markov shop-around model.
The local government financial sources depend on the intergovernmental fiscal transfers such as national treasury disbursements and local allocation tax. In recent years the decentralization is being discussed actively. And then, there is an assertion that fiscal transfers to the local government from the central government should be reduced, and it should be transferred to the independence revenue sources such as local taxes. We can get some analysis results that it should be transferred to the independence revenue sources in each place from resource allocation function. But it is thought that inter-regional income redistribution function becomes weak on one side, and that lack of the annual revenue arises in weak region of the economic structure. In this paper, We present an input-output model in consideration of fiscal transfers to the local government from the central government. And it is possible that the regional economic impacts when it cut fiscal transfers, a local independence revenue source was raised are analyzed by the application of this model. We analyzed the economic impacts of a tax source transfer to the local taxes from the local allocation tax about Kagoshima Prefecture and Aichi Prefecture. It was shown that it decreased in the amount of net product of Kagoshima Prefecture when it was transferred to the independence revenue sources from the local allocation tax. And it increased in it of Aichi Prefecture.
The main purpose of this paper is to investigate the informational role of distributors and importers in the international oligopolistic market. This paper is intended as a synthesis of the Economics of International Imperfect Competition and the Economics of Distribution System. When we analyze modern society from the viewpoint of Regional Economics (or International Economics), we should consider the world in which not only producers and consumers exist but also intermediaries enter among them. Intermediaries carry out activities such as the transportation of goods among areas (or among countries) and the information gathering. The conventional economic models analyze only the relation among producers and consumers, without paying due attention to the working and performance of intermediaries. In reality, however, intermediaries such as “the distributor” and “the importer” exist and play an important part. We work with a Stackelberg-type model under uncertainty in which producers play the role of leaders and distributors and importers act as followers. By comparing the five types of information structures, it is shown that information may be detrimental, that improved information for one firm may or may not benefit the other firm and the consumer. In conclusion, this paper clearly shows that the information sharing between the distributor and the importer is more efficient than the information transmission from them to the producer.
This empirical study consists of two parts, a historical data analysis and an econometric modeling exercise. The former part explains the scale of commodity flow by three basic concepts, discusses the supply structure by different transportation modes, and observe their historical changing trends by comparing three periods. The latter part clarifies the relation between the interregional commodity flow and the development of Japanese economy by constructing Interregional Commodity Flow Model, and implementing simulation studies. Based on the adoption of three basic measures of interregional commodity flow, and their historical trends in 1970-1996 with the elasticity of their transported volume to GDP, we observed three cycles with low-elasticity for former half, and then high-elasticity for latter half.: First (1970-79), Second (1980-89), and Third (1990-96). The share of motor-vehicles increased form 8.687% (1950) to 53.29% (1996), while the share of railways decreased from 50.27% (1950) to 4.35% (1996). I clarified the saturation levels of motor-vehicles (railways) in Japan as 60.0% (3.9%) based on saturation equations. The model consists of 6 structural equations and 4 definitional equations with annual data in 1975-1996. The equations are divided into two blocks: macro economy block and physical distribution block. I confirmed a good fitting as the results that the mean absolute percentage error for final five yeas was less than 2.2% for all variables. Various simulation studies revealed that recent deindustrialization trend decreased while deconcentraion of industrial sites to Pacific-Ocean-Belt-Region also decreased the total scale of interregional commodity flow in Japan. The decrease of petroleum price would urge the use of motor-vehicles, and increase the service ratio of motor-vehicles.
Two types of externalities are conceivable in telecommunications: network and call externalities. The network externality represents that the benefit to a subscriber depends upon the number of subscribers. The call externality shows that recipients of calls can receive benefit without paying any usage charge. This paper examines their effects on the demand and pricing for telecommunications services. The optimal two-part tariffs are derived for the cases: (1) both externalities are ignored; (2) only network externality is taken into account; (3) both externalities are taken into account. Compared with each other, it is shown how these externalities can affect the pricing and have the tariffs diverge from conventional rules for public utility pricing. Telecommunications services generate benefits for at least two parties: the originator of a call and the receiver. Recent advances in telecommunications technology have proposed a new option for the tariff. Typically, the caller-ID service has enabled the recipient to know, before getting the phone, who the caller is and to exclude negative benefit calls. In some cases, the recipient is willing to receive the call and also to share the charge. Telecom companies can charge not only callers but also recipients as well. By doing so, the two types of externalities can be internalized more efficiently.
Since the reform policy have been carring out, the economy is being a great successful in China. But the natural environement also be destroyed so severely that it must be paid special attention to control its' development. In order to explore the mechanism of environmental pollution, it is necessary to analyse the correlation between the industrial structure and environmental pollution. This paper gathered up large quantities of data about Chinese macro economies since 1978 and use the methods of multivariate to find the reasons of environmental pollution and build up the estimable models. Base on the models, to predict a growth rate of the gross national product, industry development, consumption of the energy, and also include the industrial waste by 2003. According to the predicted results, presents a suitable policies proposal for controling the developing of the environmental pollution.
This paper clarifies the impacts of the fiscal-consolidation policies in developed economies when the economies are involved in a Free Trade Agreement (FTA), using a perfect-foresight dynamic Applied General Equilibrium (AGE) model of global trade since some macroeconomic policies which cannot be captured in a static framework. The model in this paper solves for the set of inter- and intratemporally consistent prices, and we obtained the following results. First, the response of the global economy to the fiscal-consolidation policies in high-income countries would be crucial, and the increase in the foreign capital inflow is directly related to the welfare gain. Second, there would be no negative effect of the fiscal-consolidation policies in developed countries on lower income economies. Finally, an additional implementation of traiff liberalization to the fiscal-consolidation policies may raise the growth rate of not only low-income countries, but also middle-income ones.
Analyzing the economic importance of cultural industries (Theater, Museums, Theatrical Companies, Motion Picture, Video and Television Production) and expenditure of arts-motivated visitors in Tokyo on the interregional Input-Output table, caltural industries indicated a considerable production induced effect on the tertiary industry of Tokyo. And compared to cultural industries of the New York-New Jersey Metropolitan Region, the economic effect in the NY-NJ is greater than that in Tokyo (Table-1). Especially, the nonprofit arts and cultural institutions play important roles on the economy of NY-NJ. In Japan, in the case of local governments planing regional activation, promoting the cooperation of NPO and profit-making corporations will be one of the most effective policy measures.
Generally, it is considered that the structure of social dilemmas exists in the regional environmental pollution and a high social cost can be easily caused by the conflict as well. However, due to the difficulties of the judicial solution of the conflict, some kinds of non-judicial solution of the conflict such as the regional agreements for the prevention of environmental pollution are requested. In this paper, we clarified the characteristics of the conflict and the circumstances of the conflict solution through the case study of the Japanese livestock industry. Furthermore, we examined the specific characteristics and effectiveness of regional agreements for the prevention of environmental pollution as a method of conflict solution. Following conclusions have been obtained. First, the release of information from livestock farming to the local residents and the establishment of a relationship of mutual trust between livestock farming and residents are considered to be quite important in the regional agreements. Secondly, besides the technological factors, the social relationship between livestock farming and residents might cause great affects on the management of livestock farming. Finally, the permissible standards of environmental pollution or some kind of order exists differently from region to region. Thus, as a method of conflict solution, regional agreements for the prevention of environmental pollution is considered as the reflection of the differences of each region.