A lot of accidents that cause environmental pollution have happened in recent years, then the public concern with compensation problems for environmental damage, especially the case where the firm that causes the accident can't compensate all of damages, has been growing greatly. The most controversial topic in this problem at present is extending liability, and it has turned to be successful in a number of cases as a mean to find money to compensate properly victims. Therefore, to examine the role of extended liability, I consider an economic activity that involves transportation of environmentally hazardous materials like oil, and then I discuss the problem that under which conditions how extending liability of the buyer and the seller of the materials effects on social welfare, when the carrier can't compensate all of damages because of his cash (assets) constraint. Namely, the purpose of this paper is to examine the impact of extended liability on economic activity that involves environmental risk and to design optimal extended liability rule. For another, I also try to compare the efficiency between optimal rule that derived in this paper and other rule that adopted in the real world, for example with respect to oil pollution damage, under the following rules: International Convention on Civil Liability for Oil Pollution Damage (CLC), and International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage (FC).

View full abstract

Protection of intellectual property rights is an important global economic issue. This paper examines the relationship between protection of intellectual property rights and economic growth in the framework of an endogenous growth model with product innovation determined by profit maximizing innovators. In this paper, we focus on the role of patent protection in long-term economic growth.
In general, conventional literatures of R&D based models of economic growth adopt a common hypothesis regarding patent systems : that patents are infinitely lived ; however, in reality this hypothesis is evidently not verified. This paper modifies the model of Jones (Journal of Political Economy, 1995, vol. 103, no. 4) and shows how the implications of the model vary in a framework of finite patent length. Our theoretical investigation shows that the implications from our model differ greatly from those of the Jones model. For example, even though the duplication parameter is sufficiently large, a decentralized economy can generate overinvestment in R&D. On the other hand, if the parameter of duplication is small, then a decentralized economy suggests underinvestment in R&D, for all parameter values of knowledge externalities.
JEL classification : O30, O34, O41

View full abstract

Recently, the environmental situation in many of developing countries has deteriorated. These countries have confronted with overcrowding population, environmental degradation and poverty. In this report, we shall concentrate our attention on the environment of common pool resources (CPRs), which are characterized by non-excludability and rivalness. Some environmental issues of CPRs are mainly due to externality of CPRs. We shall prove that the environmental and population-related problem should be solved from these aspects.
In this paper, we first study several factors which affect the scale of population. Next, we shall set a hypothesis concerning the familism (the family system), which affects the size of family and the scale of population significantly. Moreover, we also hypothesize the existence of an optimum family size and an optimum population determined by an optimum family size. Then we study the issues both by theoretical approach and empirical analysis. Finally, we prove some conclusions about the population size to be consistent with environmental preservation.
JEL classification : Q50, Q56

View full abstract

The static theory of road pricing was theoretically proposed by Walters in 1960s, and it aimed to moderate road traffic congestion by levying a congestion toll. However, this work caused much debate in the literature, because of its theoretical defects such as its inconsistency of arguments between demand function and cost function, lack of dynamic consistency of equilibria on the backward-bending segment of the cost curve, and so on.
Verhoef (1999) focuses on the difficulties arising with the backward-bending cost curve defined over traffic flows in the context of continuous congestion, and questions the relevance of the backward-bending segment of this curve by demonstrating that the equilibria on this segment of the cost curve are dynamically inconsistent and so infeasible. Although his model seems to resolve almost all theoretical defects in the static theory of road pricing, it is not consistent with the classical theory of road pricing because it depends on the bottleneck model (Vickrey, 1969, and Arnott, de Palma & Lindsey, 1998), which does not aim to regulate queue size by levying toll.
Naor (1969) has examined the relationship between Pareto optimal and revenue maximizing tolls for a queuing model that permits balking. Consider an M/M/1 queue with gross accession rate λ and service rate μ. Each customer has a cost per unit of service and waiting time, C, and receives a benefit R if he is served by the facility. If an arriving customer finds q people ahead of him, he faces an expected waiting plus service time of (q+1)/μ. The toll charged by the facility, θ, determines a critical queue size, n, such that the customer balks if q≥n. Assuming that there is no balking cost, the customer's decision rule is : join queue if θ+C(q+1)/μ≤R (if q<n) ; balk if θ+C(q+1)/μ>R (if q≥n).
The point of Naor's article is to show that the value of n which maximizes his social welfare function is greater than that which maximizes the facility's expected revenue per unit time, i.e., the revenue maximizing toll exceeds the socially optimal toll.
In this paper, we will apply the above Naor's queuing model to the theory of road pricing by levying toll and regulating queue size at the entrance of the road. Although Naor's model permits balking, the classical road pricing theory does not seem to permit balking because it assumes that a potential driver will use the road if his expected benefit exceeds his expected cost of using the road. So we do not permit balking and obtain an optimal value of congestion tax.
JEL classification : R41, R48, D62

View full abstract

Bricks and mortar model incorporate some features of housing supply, namely that there is an asymmetry between positive and negative shocks, into a dynamic version of the Alonso-Mills-Muth urban model (Glaeser and Gyourko [3]). And this simple model presents several implications which document : (1) city growth rates are highly persistent, especially among declining cities, (2) declining cities attract individuals with low levels of human capital. This paper applies this model to housing market in Japan and examines the effects of the urban renewal policy to levels of human capital. And our study suggests that urban renewal policy makes declining cities more attractive to uneducated people and deter the growth.

View full abstract

In order to guess the old-man care demand of Kurume-shi, Fukuoka, the Microsimulation was used, the life cycle model of an individual and a household was taken up, and old-man care demand, elderly care insurance, and a public pension policy were considered.
A Microsimulation is a simulation which made the analysis unit each action subjects, such as an individual, a household, etc. which is the minimum unit, and the national census first total data (an individual and household) is stored into a database, and is dynamically changed in accordance with an individual life cycle annually. About the event (birth, entering school, employment, marriage, a child's birth, change of occupation and retirement, a pension life, death) in an individual life cycle, a random number is generated and a kind of Monte Carlo simulation is performed. If it does so, by the each people in a model piling up age, and people being born newly, getting married, or it being divorced, changing one's employment, retiring, dying, or carrying out, the attribute of the individual and household of a model changes, and can guess change of household structure, and individual information. The purpose which guesses old-man care demand is the center of commerce of Kurume-shi, and in order that it may develop the business for an old man, it is calculating a future anticipation value. However, if it is not what was not temporary and considered ten-year after and 20-year after, as a result of increasing the number of home helpers too much, there is also a case which has lapsed into personal bankruptcy in a private sector nursing care service provider.
Through Microsimulation analysis, an individual and a household model are built, and an imitation experiment is conducted and analyzed from 1995 to 2015.
Moreover, individual annual earnings were calculated every year. It is asking for all citizens' distribution citizen income, and 65 or more years-old elderly people's pension benefit.
The Microsimulation program was actually built and performed. Although elderly care insurance started in 2001 and many private sector contractors have intervened, there is a case which profit does not suit.
A Microsimulation is the very leading tool which can achieve results clearly, and comparative statistics can also perform it easily by changing DB reference table parameter.
JEL classification : C80, C88, R20, R22, R50

View full abstract

Paldang Lake has been working as water supply source for the capital Seoul in South Korea and metropolitan area. From geographical features, Paldang Lake has high density of eutrophication material such as phosphorus and nitrogen. And increase of population and development of economy has made water quality deteriorate. Moreover, surrounding area of Paldang Lake cannot be developed from various restrictions by government. Then, resident's dissatisfaction is not improved though the government executed the water quality improvement policy in 1999. And the improvement of the water quality is not yet seen. The government collects 11 yen per ton as the water use charge. But, the distribution of the fund is inappropriate.
In this study, we formulate a model which describes socio-economic activities, land use and the load of pollution (nitrogen, phosphorus, COD) and suggest effective policies in order to reduce pollution. First proposal is the region which distributed water-use charge is decreased. And, second proposal is the government subsidize for industries of restricted region. We simulate the model which can promote a sustainable development of Paldang area from the year 2001 to 2010.
In conclusion, GRP will increase twice in ten years. Amount of nitrogen, phosphorus, COD's exhaust becomes 55(t/d), 4(t/d), 138(t/d). And it compared with the case of no execution of the policy, nitrogen, phosphorus, COD is reduced by 18%, 26%, and 33%. And, 11 yen per ton for the water supply of 2001 is needed to be raised to 1,100 yen a ton for the policy execution. It was confirmed that the policy proposal in this study is effective. A distribute of fund and the subsidy for industries in the restriction region is effective to reduce the pollution.
JEL classification : Q53, C61, Q58

View full abstract

The purpose of this study is to examine the characteristics of interdependence between flow of goods and waste in regional economy focusing in Hokkaido region. We apply the input-output model considering waste generated from regional industry and waste treatment sectors. Estimating waste input-output table for Hokkaido region that consists of 38 industrial sectors and three waste disposal methods, we find as follows :
First, one unite of final demand for “cement, glass product, miscellaneous stone & clay products”, “beverage, feeds & tobacco” contributes to reducing waste generation for landfill. And that for “pulp, paper & processed paper products” contributes to reducing waste generation for both landfill and incineration in the case of estimation including marketable waste.
Second, although the coefficients of direct landfill requirement are negative to produce “precision machinery”, “construction”, “gas supply, stream & hot water supply”, “public service”, “other services”, its inverse counterparts are positive. It means that one unite of final demand for the products indirectly requires landfill service.
Third, compared our results with the waste input-output analysis in Japan, we find that the operation of industry such as “agriculture”, “pulp, paper & processed paper products”, “machinery of transportation”, “other manufacturing product (plastic products)” contributes to the reduction of waste for landfill in Hokkaido, although they induce the generation of waste for landfill in Japan.
Difference in characteristics of the waste circulation is mainly caused by allocation matrix and input coefficients from the industries of using waste. To improve our method, it is necessary to separate the classification of waste treatment sector in more detail and to improve the estimation method of waste input matrix. It's also necessary to introduce dung and urine of animals generated from agricultural sector into our waste circulation process.
JEL classification : Q51, Q53, R15

View full abstract

The purpose of this paper is to analyze the dynamics of agglomeration in Japan's food industry from 1980 to 2000. We measured agglomeration and co-agglomeration indexes, as suggested by Ellison and Glaeser (1997). The food industry was categorized following the four-digit system of the Japan Standard Industrial Classification. The result clearly shows that there was a strong agglomeration in “Agar”, “Wine”, “Tea” and “Starch”. From 1980 and 2000, industries that witnessed increasing agglomeration were “Sugar”, “Agar”, “Fish-meat”, “Ham” and sausage”, “Miscellaneous livestock products”, and “Tea”. We found that the reason for this was that regional concentration exceeded industry concentration. On the other hand, the following industries witnessed decreasing agglomeration : “Umami seasoning”, “Refined sugar products”, “Edible oils and fats”, “Frozen seafood products” and “Wine”. This could be because of increasing of regional concentration or that industrial concentration far exceeded regional concentration. We observed that industries with increasing agglomeration index, used mainly domestic inputs whereas those with decreasing agglomeration index relied heavily on imported materials. We also observed that co-agglomeration between “Frozen seafood products” and other seafood products. The index between seasonings showed increasing tendency. We found co-agglomeration between seasonings and plastics and glass industries.
JEL classification : R11

View full abstract

The Sea of Japan area consists of Japan, South Korea, China, and Far East Russia in Northeast Asia. The Sea of Japan is typical closed ocean and has a characteristic to be easily deteriorated by human activities around the countries and regions in the future. Hence, the Northeast Asia countries have to cooperate with one another in order to conserve or improve the seawater environment and attain the sustainable development.
In this study, we try to develop a system simulation model, which describes the structure of water pollutant inflow and the socio-economic system of the target countries and regions of the Sea of Japan area. From the viewpoint of integrated water environmental management, the model can take into consideration with the international investment policy to reduce the water pollutant emission from industrial activities in the target countries over a certain period of time by a dynamic simulation.
JEL classification : C61, P49, Q53, Q56, R19

View full abstract

In the present days, many durable goods such as cars and electric appliances are traded. On the other hand, as well known export subsidy is the one of policy tools in international trade. In this paper, durable goods and strategic trade policies in the third market model is analyzed. We make an analysis on how the strategic trade policies are affected by product durability. As a result, it is shown that the durability can weaken the effect of the opponent's subsidy as a strategic policy. As the product durability of own country rises, the optimal subsidy of own country increases. On the contrary, as the product durability of the foreign country rises, the optimal subsidy of own country decreases. Furthermore, it is investigated how the optimal Nash equilibrium subsidy by the game between the two governments changes with the product durability and how it influences the volume of trade, social welfare and firm's profits.
JEL classification : L13, F13

View full abstract

About the time at Hanshin-Awaji Earthquake, the Hanaore, Nishiyama, and Obaku fault that pass through urban area in Kyoto city have been activate, so it is necessary to act against the huge disaster in the urban area, Kyoto city. Especially from the experience of Hanshin-Awaji Earthquake, waterside natural open-spaces are essential not only for providing natural amenities, but also for evacuation in the case of earthquake disasters in urban area.
In this paper, we first explain waterside historical transition in urban area, Kyoto city, in order to check the lost watersides which are the potential of water side creation for mitigation of earthquake disaster risk. Secondly we consider Horikawa River Waterside Development Plan as an implementation of waterside reborn for earthquake disaster risk mitigation. Through the analysis of interview survey intended for senior person living in the target area, we know inactivation of the community of target area. Because it is necessary to activate regional community for planned waterside which function as the disaster risk mitigation, we consider the way to increase regional disaster prevention capacity based on community activity to implement disaster mitigation functions which waterside natural open-spaces have.
JEL classification : Z13, Z12

View full abstract

In recent times demand for enjoying nature and concerns about prospects and impacts of tourism have dramatically increased. Forests and green spaces have been shrinking which has lead to the degradation of tourism resources and devastation from tourist attractions. Negative impact of tourism on the residential environment has also been an issue of major concern.
The concept of land use management needs to be employed for developing and managing tourist resorts. The application of the concept is essential for study and analysis of : the situation of land use in the region, changes in land use and impacts/consequences of the land use changes.
The followings are the results of this study :
1) The digital land use maps of years 1992 and 2002 were made from topographic maps. Overlay analysis was applied on the digital maps which clarified location and size of land use changes from forest to residential and agricultural areas. The analysis also identified the particular places where the land use had been significantly changed to residential areas.
2) A significant correlation was found between the area size of residents and buildings in 1992 and population in 1990. Land use change had strong correlation with the capacity for the number of tourists in the region. In addition, it became clear that the effect of tourism spots was small to the land use change.
JEL classification : R11, R14

View full abstract

The overpopulation in urban areas causes various kinds of problems. Teleworking has potential to solve these problems and urge people to settle in rural areas. So it has commanded public attention as a new commuting way to surpass the limit of spatial distance. However, it doesn't spread as widely as it is expected. In this current situation, it is important to reveal a quantitative evaluation of teleworking from workers' point of view. In this study, we utilize the Contingent Valuation Method, which is mainly used in an evaluation of the environment, and try to measure workers' benefit in the form of their willingness to pay by monetary value, assuming the situation in which workers can telework. In addition, we utilize the model including the attribution expected to be related with the willingness to pay, to reveal which items can impact on the willingness to pay. These analyses are conducted by Survival Analysis and based on the data from the survey which is carried out in a specific company. After making a careful examination of the problems peculiar to the Contingent Valuation Method such as the protest bid, we analyzed the relation between the willingness to pay and the workers' attribution, and revealed what items impact on the workers' benefit. It is said that all participants in teleworking can be winners from a broad view, but we found that that isn't always true from a micro-view since the workers' benefit depends on their attribution. These results suggest that teleworking doesn't spread widely and you can't succeed unless you take the workers' attribution into consideration when introducing teleworking.
JEL classification : R19, R39

View full abstract

The purpose of this paper is to analysis how much “High Risk-High Return” Response can influence a regional economy. And Taiwanese high-tech companies are focused on and mainly their investment strategy and employment policy are analyzed in this paper.
Taiwanese economy has been recovered steadily since 2002. And the economic growth ratio of 2004 1Q and 2Q reaches 6.72% and 7.88% respectively. This high growth comes from the private investment growth ratio (24.9%). Especially high-tech companies are in a position to lead this investment.
In Taiwan, there are many excellent high-tech companies such as TSMC (Taiwan Semiconductor Manufacturing Company) in Semiconductor industry and AU Optronics Corporation in Liquid Crystal Display industry. They mainly adopt “High Risk-High Return” Response. They invest much money positively and profit much. They have played a large role to stimulate Taiwanese economy. And unemployment ratio of these years becomes lower consequently. Though “High Risk-High Return” Response of Taiwanese high-tech companies may involve a risk of losing much money, this has a salutary effect on Taiwanese economy now.
“High Risk-High Return” Response can be essential for companies to survive, because it is not easy for companies to gain without much investment in today's fast-moving economy. This means that Japanese companies may have to adopt this “High Risk-High Return” Response to outpace foreign competition.
JEL classification : R11, R39, R58

View full abstract

Historically, Local Currency Systems (LCS) were founded in 1930s when economic depression spread widely around the world to support the local economy. However, currently, LCS are seen as a tool to strengthen solidarity in the local community by solving social welfare issues and environmental issues uncovered by the state.
This study aims to clarify the social functions for participants in LCS through a case study of Local Exchange Trading Systems (LETS) in Sweden. The focus will be on the role of personal relationship networks. This study examines an in-depth interview with the organizers of seven LETS associations in three cities in Sweden (Stockholm, Göteborg, and Lund) to reveal their purpose. A questionnaire survey was done in BYTS, the oldest and largest LETS to date in Sweden, to test the realization of the previous revealed purposes. Additionally, we use the methods of Social Network analysis to grasp the characteristics of personal relationship networks in LCS. The study can show that one of the main aims of these LETS—to develop social networks—is indeed accomplished. Not only was the social functions of the LETS a motivation for the effective participants to join BYTS, but they also could establish personal relationships. The opportunity to make friends was especially attractive for low-income, low-educated and retired persons. Furthermore, we identify four characteristics of LCS networks ; such as expanding peer to peer networks without mediation of the office (a network center) and creating the system for evaluation of goods and services which are hard to evaluate in the national currency system of our dehumanized society.
The result suggests that LCS can contribute to visualize various potential needs embedded in the participants' mundane lives which usually are ignored by the public policy and the market through promoting peer to peer reciprocal exchanges, and therefore we can conclude that personal relationship networks created by using LCS has the important function to revitalize local community.

View full abstract