In recent years, the solution of road-traffic problems made shift to policies of software side such as utilization of information and communication technology from policies of hardware side such as construction and improvement of roads under the severe finance situations in Japan. Lifestyles of people have been changing greatly by the progress of information technology, and users' needs for road-traffic have been diversified with increase of users through information terminals such as cellular phones or internet.
An introduction of Intelligent Transport Systems (ITS) is expected the effect such as relaxation of traffic jams or shortening of travel time by provision of the detailed and the prior information. As one of the ITS policies, we can pick up the travel time information provision. The travel time information provision have been provided through radio or internet. Many studies have been done about these effect, but we considered that don't have a definite conclusion. We have to analyze the relationship between drivers' reaction behavior and the change of network performance after received information in order to provide the traffic information service that can accommodate to the various needs of users.
In this study, we analyze the variations of route condition and formation process of drivers' perceived travel time in the case where travel behavior is repeated under the stochastic travel demand with and without the provision of travel time information, and we examine the influence of the provision of travel time information on travel behavior and network performance. For this purpose, we construct a simulation model of traffic assignment for a simple road network, and we consider the simulation results by changing the route property and the stochastic travel demand property.

JEL classification: R15, R41

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Land improvement projects are implemented with government subsidies. Among the reasons for this are the externalities of the economic effects of such projects and the fact that these projects have the aspect of public goods. Moreover, land improvements have a feature of the non-exclusive goods, which makes these projects difficult to implement with market-based transactions alone. At the same time, Japanese people's demands for the functions provided by agriculture and rural communities are changing in the past few years. Regarding the effects of land improvements, multiple functions are also being sought. Furthermore, the aging of existing land improvement facilities, co-mingling of non-farming households in rural areas, and the diminishing ability of farming households to maintain and manage land improvement facilities due to sluggish regional agriculture are now considered new challenges. Thus, encouraging the participation of community residents, including members of non-farming households, has become important in the planning and implementation of projects. However, reaching a consensus among diverse stakeholders is not expected to be easy. This study attempts to reveal the formation of perception structure among farm households about land improvement projects. It also draws policy implications for an effective rural planning.

JEL classification: Q15, H41, H54, D70

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This paper analyzed the role of Japanese foreign direct investment (FDI) and trade in promoting agricultural growth in East Asian countries over the period 1987-2003. The study employed the panel data econometrics to investigate this relationship empirically. The results indicated that imports, exports and trade liberalization were the important factors that contributed to growth in China, Malaysia, Indonesia, the Philippines, and Thailand. Thus, trade promoting policy in these countries would also stimulate the agricultural growth. By contrast, only imports and trade liberalization were important factors contributing to growth in Korea and Taiwan. The study also found that Japanese FDI significantly helped to stimulate the agricultural growth, but the evidence was weak in the cases of Korea and Taiwan.

JEL classification: O47, Q17, R11

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Renewable energy sources have been receiving increasing support from the public authorities because of the environmental advantages they procure in comparison with conventional fossil energy sources. However, renewable energy technologies are still immature or have not reached an adequate level of economic performance. Therefore, they cannot yet compete directly with conventional energy technologies. The liberalization of electricity market may appear to be a partial response to this problem by enabling consumers who want to pay for the environmental goods to purchase green electricity directly from a supplier. This solution has been tested in a number of countries (Germany, United States, Netherlands, etc.), and could also be introduced such a solution in Japan if the residential electricity market would be liberalized.
This report provides the information about what class of consumers would purchase green power, what would gives them motivation to contribute, and their estimated willingness-to-pay by using contingent valuation method.

JEL classification: D64, Q42, Q51

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This study aims measurement of bid rent function of household in Tokyo Metropolitan Area with the model of location choice of household in Urban Economics. We consider the basic model in which utility function of household is specified lot size of house and amount of composite consumer good. In addition, this study focuses on finding out the factor except for them when household select the location of house. And we consider whether the structure of the estimated bid rent function is different according to the difference of the region and the passage of time.
The results are followings ;
(1) In the passage of time from 1995 to 2000, the structure of the bid curve of the household doesn't change.
(2) The structure of the bid curve of the household changes by the region.
(3) The existence of the urban function like the station and the bank, etc. has working that raises the effect of the household utility.

JEL classification: R14, R21

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In this paper, we use the data from Chugoku Shinshutsu Kigyou Ichiran 2003-2004 (A View of Japanese Enterprise Investments in China 2003-2004) to study 1ocation choices of Japanese food industry investment in 231 Chinese cities from 1992 to 2001, paying particular attention to agglomeration effects. A negative binominal model indicates that labor cost (WAGE) is the most important factor that deters Japanese food industry's entry into Chinese cities. Market size (GDP), raw material (MATER), port (PORT) and policy incentives (POLICY), however, have positive effects in Japanese food industry investment location choices in China. As for the three-tier agglomeration effects' test, the effects of Japanese manufacturers agglomeration (AG2) and Japanese food manufacturers agglomeration (AG3) are confirmed at the city level, but not for foreign investment agglomeration (AG1).

JEL classification: Q13, Q18, F21

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In this paper, we examine the existence of agglomeration effect on production in the Japanese food industry from 1985 to 2000 using plant-level 4-digit subclassification, panel dataset and agglomeration index in Akune and Tokunaga (2005), and Tokunaga, Kageyama, and Akune (2005), based on Ellison and Glaeser (1997). This is an improvement on the conventional indices such as Location Quotient (LQ) or Location Gini Coefficient (L). When we apply a flexible translog production function and cost share equation as suggested by Kim (1992), we find that around 2% of positive agglomeration effect exists in absence of any restriction on homotheticity in the case of employment based agglomeration (γEG).

JEL classification: D24, E23, R11

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This paper proves that survival insurance has an important function which helps to attain optimal asset pricing (reflecting fundamental corporate values). We present two models for comparisons: one with insurance and the other without.
Survival insurance in the Blanchard[1](1985) model is a life-long annuity scheme which puts up one's residual estate after death as collateral. The function of insurance assumed is to raise the utility level through annuity payment to cover the stochastic risk of death. This compensatory payment is made possible because the insurance scheme enables the deceased individuals' estate to flow back to the survivors. Without insurance, the residual financial estate does not flow back to the survivors. It becomes a hoarded asset. Hoarded assets unable to be used in the real sector of the economy prevent both consumption and investment from attaining optimal levels.
The paper shows that stock prices without compensatory payment of insurance tend to rise as stock earnings rates fall. Rising stock prices beyond their theoretical values are not optimum. With survival insurance the stock market reflects fundamental values since the deceased's financial estate readily flows back into the real sector, restoring optimal asset pricing that sub-optimal capital accumulation fails to achieve.

JEL classification: E13, E31, E44, G12, G22

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Evaluation is necessary before implementing any projects or policies, including those in environmental science. To evaluate project or policies, citizens' viewpoints are essential. However, citizens are diverse because our society has become more complex in recent years. Therefore, how to evaluate, how to satisfy the required level of accountability, and how to reach a good agreement are problems that must be addressed.
In the field of environmental science, we have already developed some methods for addressing such problems, such as carrying out cost-benefit, cost-effective, and multi-criteria analysis. Moreover, we have developed some economic methods for calculating environmental value. However, these methods cannot be used as yet to adequately handle diversity, complexity, and uncertainty.
In this study, we discuss the framework of evaluation in terms of multi-frames, multi-criteria, and multi-subjects, particularly with regard to environmental issues. For this purpose, we focus on wastes that are handled by citizens.
When a garbage treatment system is selected, we have to try to address all the problems to satisfy as many people as possible, because such a system has a great influence on citizens' daily life. Thus, we provide some options regarding garbage treatment, which include the garbage composting system by household unit, community unit and local government unit. We also design a trial experiment. By performing this experiment, we try to determine the extent of this selection problem, and deliberate about the framework of evaluation and decision-making.

JEL classification: D70, D81, D82, Q51, D53

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Global warming causes heavy rainfall and rising sea levels. These climate effects prove to be a strong motivation for looking differently at issues of water management and safety in estuaries. For decades the only answer to hazardous situations (e.g. flooding by increased river discharges or by incoming storm water) was to strengthen levees and dams. This led to damage in the natural water system, a declining biodiversity and destruction of the unique estuary and river landscapes. Nowadays different approaches are more frequently implemented, creating more space for the rivers as a guiding principle. Instead of stemming and/or speeding discharge, water is contained in estuaries and/or catchment areas. This alternative approach to water management contributes to a more sustainable development of the estuary, protecting the natural and ecological values. However estuaries are often densely populated areas, accommodating several (conflicting) spatial and economic functions, such as residential areas, ports and harbors, industrial zones, farming and recreational facilities. Creating more space for water management projects (i.e. retention areas, flood planes and wash lands) leaves less space available for other spatial developments. As a consequence, stakeholders will be affected in their interests; e.g. cities cannot grow unrestrained and farming will have to be downsized. Concepts such as ‘multiple land use' and ‘societal cost—benefit evaluation' come to mind to characterize the challenge for transforming the designated areas into more sustainable, multi-functional retention basins.
Governmental agencies are often acting as project executives in these transformations. They are faced with various stakeholders who are all trying to defend or strengthen their specific interests. A vital question is how to communicate with these stakeholders in the different stages of the transformation process. What communication strategy applies to what situation ? And equally important, if a communication strategy is developed, how should it be implemented ? What will the message be, how are the target groups identified and addresses, which mediums should be applied ? And, more important, what kind of public participation is required to enable cooperation and avoid opposition to the transformation process ?
In general four basic communication strategies can be identified: co-knowing, co-thinking, co-working and co-deciding. Each of these strategies apply to different situations, following the cultural and historic context in the area, the established relationship between the ‘governor and the governed', and of course, the preferred style of governance.
In a research assignment involving four governmental agencies in The Netherlands, the UK and Belgium—the Interreg IIIB-project Flood control Management in Estuaries/FRaME¹—we have evaluated the applied communication strategies in various flood control areas in the EU. For this assignment, an evaluative framework was developed. The evaluation shows the suitability of the applied communication strategy in each of the reviewed areas. Moreover, lessons are drawn on the question of which type of communication strategy is most suitable in what situation. Also, the review gives examples of good practice and inspiration for ‘sustainable' communication efforts in future transformation processes.

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Currently the forest policy in China has been developed on the basis of public or environmental viewpoints. ‘Greening for grain policy' is an actual forest policy in China, meaning conversions from farmlands in the mountains to forests. This is because the situation of the forest in China has been deteriorated due to the drastic conversion of the forests to farmlands to increase agricultural products in 1960's. Agriculture on the mountains with sharp gradients has led to ill-productivity and poverty situation. Moreover, degradation of the forest land in the upstream area has increased the risk of flood hazard as well as desertification that cause considerable damage to the downstream area and also caused damage to biodiversity. The reforestation policy in China, therefore, must be planned to pursue both improvement of the life standard of the farmer and environmental sustainability.
In this paper we shall investigate the reforestation policy in China, in particular, the ‘Greening for grain policy' after the latter half of 1990's. Then we study the effectiveness of this reforestation policy both on preserving natural environment as well as on improving the farmer's welfare who have accepted the greening of their farmlands. To prove the sustainability of the policy, we have done a field research at Chengdu, Sichuan province. The research outcome proves some difficulties of the feasibility, effectiveness and sustainability of this policy. Finally we shall give some implications concerning the forest policy reforms in China.

JEL classification: Q23, Q24, Q28

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In this study, we try to present the framework of an integrated evaluation model, which drives an optimal allocation of environmental investment in order to conserve water environment of the Sea of Japan, and we also analyze an impact for the seawater quality due to land-based water pollutant from socio-economic activities of coastal area. The target regions are coastal area of the Sea of Japan, which includes some parts of Japan, South Korea, China, and Russia in Northeast Asia. To propose a feasible solution of decision making for integrated ocean management, a dynamic system simulation model is formulated as a linear programming problem maximizing an objective function with defined sub-models taking into account of environmental investment policy. The sub-models consist of the structure of water pollutant inflow, air pollutant emission, and socio-economic activities in the target area to simulate environmental and socio-economic dynamics. Furthermore, we quantitatively make an analysis of the influence on seawater quality by land-based water pollutant flowing into the Sea of Japan.

JEL classification: C61, P49, Q53, Q56, R19

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In this paper, we address the problem to extract loyal visitors' characteristics at central commercial districts by using visit frequency data from on-site sampling survey. These kinds of data normally collected by home-based sampling survey because the phenomenon of consumer's trip occurs at their home. And yet it takes expensive cost, so we usually adopt on-site sampling survey. But if we apply the data collected by on-site sampling survey to the methods of statistical estimation, it is known that choice-based bias problem is caused. The purpose of this paper is to propose the modified regression tree method, which corrects the choice-based bias and to apply this method to actual data of Fukuoka City in Japan.

JEL classification: M31, R58

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This paper is not based on a case study but a project that we really participated in. In this paper, we will outline two conclusions. First, it is absolutely vital that the public sector cooperates with the private sector when making infrastructure for regional business activities. Second, in future localizations, this paper suggests that the success or failure of a project depends on the leadership and the executive abilities of both citizens and firms. In this project, we have had the know-how of internal fit for regional development. In the future, the problem of how to make an attractive regional development plan for external fit must be addressed.

JEL classification: R00, R14, R58

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Loss of corporate headquarters from Osaka, the second largest city in Japan, to other cities has been a longstanding issue since 1960s. A considerable number of Osaka-based corporations have shifted their headquarters, or establish Tokyo headquarter while leaving Osaka headquarter in a ritual sense, which is unique situation in the international comparison among other second largest cities.
This phenomenon is significant to the local economy, as loss of decision-making function affects the demand to local small businesses, as well as it deprives the capability of new business creation. Although there is no panacea to the problem, the local government faces the necessity to tackle the issue.
With quantitatively identifying the shift of corporate headquarters in Osaka, this article attempts to examine changes in trends and factors of such shifts since 1980s, including a view of actual location of corporate executives and analysis by office functions.
The research implies ongoing gradual shift of headquarter functions, driven by the needs of pursuing larger market and information gathering. Though it appears to be difficult to recover corporate headquarters already lost, it requires the local government policy to create incentives to provide economic rationality enough to attract headquarter functions.

JEL classification: R11, R39, R58

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The PFI (Private Finance Initiative) method has been introduced as a part of the public procurement efficiency improvement, and execution matters in our national and the local government comes to exceed 200. The method is that the price is compared in the public sector and the private sector, and that the efficient sector supplies public service. Especially, it is necessary to consider that the value of the tax payment of residents is maximized as an actual problem in the local government's PFI project because public service is familiar. In the PFI project, the cost comparison between public sector and private sector is done by the concept named VFM(Value For Money). VFM is the idea “The most expensive service is supplied to the tax payment.” When a public sector provides it's service, a public sector compares the cost at which the public sector provides service with the cost at which the private sector provides service. If the cost at which the private sector provides it is cheaper, then it is said that there is VFM in PFI project. A public sector introduces a PFI project when the administration judges that there is VFM, and the private sector provides public service. The idea of the VFM evaluation in the PFI project is shown in “Guideline of VFM” of Cabinet Office. The contents are general. A concrete method is not shown in Guideline. Therefore, the evaluation of VFM is not being done in the standardized method in the present situation.
We classify results of VFM evaluations in PFI projects, and analyze the tendency to VFM evaluations on the project branch and a scale of the project expense, etc. We clear the cost comparison between the public sector and private sector in the PFI project, and obtain the following :
1. The fundamental idea of the cost comparison between the public sector and the private sector.
2. Based on the past examples, the present actual situation of the cost comparison between the public sector and private sector
3. Case of PFI project in the local government
4. Arguments about the VFM evaluation.
We discuss that what kind of project could obtain a high VFM evaluation in PFI.
By these arguments, we examine arguments and the actual situation of the cost comparison between the public sector and the private sector in the local PFI project.

JEL classification: H57

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In order to reduce fiscal expenditure, local governments attempt to implement policies, such as personnel reduction, private consignment of public services and so on. The introduction of information technology is also one of the policies related to cost reduction. However, we believe that due to the current fiscal crisis faced by many local governments, the implementation of information technology investment policy could contribute to a further financial burden because information technology investment is costly. Therefore, we think we should examine whether or not information technology investment within local governments is necessary and to what extent.
In this paper, we investigate whether or not information technology contributes to cost efficiency in municipal governments in Kinki area, using the stochastic cost frontier analysis. The hypotheses that we test are whether or not, the use of information technology equipment (e.g. computer, software, telecommunication equipment) and outsourcing of information technology operations by local governments result in greater cost efficiency. The results show that the increased use of information technology equipment contributes to cost efficiency, however, outsourcing of information technology operations does not.
JEL classification: H11, H72

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This paper will attempt to construct a regional econometric model in Zhejiang province, China, for forecasting its economic growth in the period of 2005-2010. The regional economy in Zhejiang is rapidly growing in China. The regional econometric model which is developed in this paper represents a typical case of the regional economy of a coastal area. By using the econometric model, we will forecast the regional growth of Zhejiang. We will try to make several policy implications for the future regional development of Zhejiang.

JEL classification: R11, R15

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