Dhaka is bound and crisscrossed by a network of rivers, canals and large tracts of flood plains. However, this megacity is growing in an unsustainable manner and jeopardizing the social and environmental values. Citizens and management authorities are alarmed with the rapid rate of depletion of wetlands resulting in an increase in the frequency of floods, drainage problems, loss of agricultural activities, and destruction of aesthetically pleasant environments. The planning, development and management of Dhaka involves multiple government agencies. In addition, a large number of non government organizations and environmental groups are working relentlessly. Dhaka Metropolitan Development Plan (DMDP 1995-2015) contains policies on conservation of the flood plain and detention areas, and the enactment of the Water Body Conservation Act has strengthened the legal aspects for securing wetlands. However, a rapid rate of loss of wetlands demonstrates that the pertinent institutions have failed to protect them. This research aims to identify the underlying reasons for the institutional weaknesses. The barriers for application of planning and legal tools are viewed from three perspectives; (i) institutional shortcomings and weaknesses in protecting wetland loss, (ii) level of coordination among the different institutions both in the public and private sectors, (iii) nature and strength of external forces that impede the desired course of improvement.

JEL Classification: R52, Q56

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This paper attempts to measure the contribution of information to economic growth by using the deterministic frontier production function. We use the panel data of input-output tables for Zhejiang Province in China and Aichi Prefecture in Japan as a case study. It is estimated that the contribution of information to the regional economic growth in Aichi is three times that in Zhejiang. It is also shown that the reason for this difference mainly relates to differences in the scale, type, and distribution of information resources. This paper provides several suggestions for promoting regional economic growth in Zhejiang.

JEL Classification: R11, R15

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Risk information disclosure by companies has recently become headline news in Japan. In risk communication situations, companies must disclose risk information to customers. However, there are incentives not to do so. Moreover, a gap lies between the amount of risk information known by the companies and the amount of risk information given to the customers. Using game theory, Umehara and Ohta (2005) develops game models for risk information disclosure interactions between government agencies and the public that interpret the public's payoff structures using March and Simon's theory of satisficing decision-making, and that interpret government agencies' payoff structures using Tversky and Kahneman's cumulative prospect theory.
We use this risk information disclosure game model to analyze the recall of products by an automobile maker and classify the interactions between the company and its customers into five games: a voluntary disclosure game, risk information searching games (1, 2, 3), and a compulsory disclosure game. The transitions that a company manager makes from one game to another correspond to that manager's subjective risk-assessment of the probability that non-disclosure would be discovered by the customer. If the probability of discovery is deemed to be low, managers play a compulsory disclosure game, and if it is deemed high, they play a voluntary disclosure game.
Customers searching activities increase the risk-probability assessment and hasten a manager's change from a compulsory disclosure game to a risk information searching game. Thus, if there are a lot of customers searching for information, managers will be pressed to disclose risk information.
Next, we use the risk information disclosure game as a model to assess methods for reducing the information gap between companies and customers. The role of a guardian agent in this is examined. We find that the presence of the agent causes managers playing the game to change from non-disclosure to disclosure. Finally, from an operation-cost viewpoint, risk information disclosure in an environment where a guardian agent is always active is considered.
On the basis of this study, we believe that the information gap between government agencies and the public would be far smaller if explanations and support are provided from experts in related fields, such as government agencies or facilitators.

JEL Classification: C72, D81, D82, M14

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In this paper we consider the design of optimal liability rules for illegal waste disposal problems using a model that includes the discharger, disposer, insurer and administration. The relationship between the discharger's responsibility and the discharger's demand for insurance are examined.
The main conclusions are as follows. Regardless of moral hazard problem by insurance, the discharger's incentives for prevention of unlawful dumping increase when he is liable for damages. Moreover, if the delegation cost is sufficiently small, the discharger necessarily delivers the industrial wastes to the appropriate disposer. Therefore, extension of liability to the discharger is always optimal when the delegation cost is sufficiently small. On the other hand, if the delegation cost exceeds a certain threshold, to prevent unlawful delegation it is not optimal to extend liability to the discharger contracting with an appropriate disposer.

JEL Classification: Q58, Q59

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Generally, food policy is expected to play important roles to ensure food security and to cope with structural changes in food consumption. This research attempts to clarify changes in food consumption in China as the wealth gap expands with extremely high-speed economic growth. First of all, the influence of economic growth on food consumption was analyzed by taking the wealth gap into consideration. Secondly, the actual situation of consumer behavior and the factors of brand selection for rice consumption were clarified through a case study of Shanghai by use of a ‘questionnaire survey', ‘food tasting' and ‘group discussions'. Thirdly, the actual situation of food consumption in the poorest households was clarified by investigating the effects and problems of the Food Assistance Program in Shanghai. Finally, the relations between the economic developmental stage and the patterns of food consumption were modeled, and an appropriate food policy corresponding to consumer diversification under the economic growth was proposed by synthesizing the above analyses.

JEL Classification: O1, Q18

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In this paper, the cological Footprint (EF) is the productive capacity numerically quantified as land area required to support a defined economy or population at a specified standard of living. In the present research, the flow of EF between industries can be taken into consideration by an inter I-O analysis. However, the actual conditions cannot take into consideration shipments and naturalization of land resources between areas because it is calculated only within an area. Therefore, a more holistic approach was taken. Provincial productive output data from all industries was gathered and assembled into a multi-regional input-output table. This was then analyzed to obtain the standard physical unit (hectares/yen) from which each regional industry's individual contribution to the EF could be determined. This process was conducted for the nine major regions of Japan as a whole. With this, comparisons between the environmental carrying capacity, as well as the internal EF flows within the country can be made. In conclusion, EF analysis suggests that Japan's economy is ecologically unsustainable.

JEL Classification: Q01, Q41, Q56, Q57

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Since the 1980s, in manufacturing industry the number of new establishment closure has been more than that of establishment foundation. New establishment foundation contributes to the creation of employment and promotes competition. It is one of important factors that stimulate the regional economy. Therefore local governments explicitly implement policies related to promotion of the creation and opening of new businesses, invitation of firms and so on. It is important to verify whether or not local governments' industrial policies contribute to the increase of new establishment foundation in order to evaluate local industrial policies.
In this paper, we examine whether or not local governments' industrial policies promote new establishment foundation in manufacturing industry. We use a pooled data set covering 47 prefectures and 5 time periods in Japan. Previous studies present demand, cost, human capital, agglomeration, industrial structure, accessibility of public transportation, public service and so on as the regional factors that determine new establishment foundation rate. However, there are few studies that focus on the relationships between new establishment foundation rate and industrial policies. In this study, we focus on industrial policies. We test whether or not prefectural industrial policies increase new establishment foundation rate.
We obtained the following results. Firstly, prefectural industrial policies have contributed to raising new establishment foundation rate since the 1990s. Secondly, suitable sites for a factory that local governments prepare do not have a positive impact on new establish formation rate. Thirdly, except for industrial policies, the factors that determine new establishment foundation rate are growth of regional demand and labor force, agglomeration, existing large-scale establishments, transportation infrastructure and regional wage level.

JEL Classification: R11, R58, H76

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This paper reports economic analyses of environmental audit systems and responsibility sharing. A voluntary audit system and a compulsory audit system are examined in the context of environmental accidents and liabilities. Under the voluntary audit system, the first-best outcome is realized in the equilibrium if and only if the auditor chooses a separation contract that separates the type of each firm. On the other hand, under the compulsory audit system, the first-best outcome is always realized in the equilibrium. That is the compulsory environmental audit system is more effective than the voluntary environmental audit system.

JEL Classification: K32, Q58

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The Japanese telecom market is presently one of the most advanced and dynamic in the world. This is the result of carefully planned development in Japanese telecom policies that have taken advantage of the external conditions of the times in Japan over the past 50 years or more. This article aims to clarify the contributing conditions based on the decades of experience in Japanese telecom policies and to determine the cross-country applicability of these policies.
Based on the overall economic and market conditions during this period and considering the development of the Japanese telecom market to date, a set of contributing conditions are proposed. Statistical verifications for the general applicability of such conditions revealed that some hold true in the sampled Organisation for Economic Co-operation and Development (OECD) nations. The most important finding is that the market dominance of the incumbent operator has a significant impact on basic telecom development. Another part of the findings showed conformity with the “digital divide” between rich and poor nations.
br<>JEL classification: L96, L98, O33

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This study aims to evaluate the consumer benefits derived from fiber-to-the-home (FTTH) services that are gaining availability throughout Japan. For this purpose, FTTH services were broken down into two parts: infrastructure (hardware) and application (software). First, the Revealed Preference Method based on the data obtained from a questionnaire survey on consumer behaviors concerning Internet usage such as browsing websites and using e-mail was used. The results showed the willingness to pay (WTP) for the FTTH infrastructure was 5,198 yen, for the TV service was 1,807 yen, and for IP telephone service was 526 yen. In addition, we found it will take more than 10 years before the total consumer surplus exceeds the total cost if a consumer can not enjoy TV services through FTTH under certain conditions. As a result, the application, especially TV services, greatly impact the spread of FTTH services in Japan. Although the infrastructure of FTTH will be improved in the future, the benefits of FTTH applications are thought to be limited and the total benefits of the two parts are lower than expected. Moreover, the tendency that WTP for highland areas is higher than for lowland areas. This may be because other broadband services (e.g. xDSL) can be accessed relatively easily in lowland areas, whereas those services are practically impossible to access in highland areas.

JEL classification: R11, R42, R48

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Using 5 years of panel data from the Yearbook of Chinese Food Industry from 1998 to 2002, we empirically evaluated the agglomeration effects indicated by the Location Quotient and provincial value added in the Chinese food industry. By estimating a Cobb-Douglas production function, we confirmed agglomeration effects on the provincial value of the Chinese food industry from 1998 to 2002.

JEL Classification: R11, R30

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This paper re-estimates regional disparity using revised macro data of China from 1978-2005. Particularly, the paper focuses on changes in the income distribution structure. First, similar to previous results we show that income distribution structure tends to be bimodal. This tendency is remarkably seen since 1993. This is consistent with when “Socialist market economy” strategy became fixed after Deng Xiaoping's lectures in the south, and the reform open policy has accelerated since this year. Second, convergence of distributions by the Markov chain also shows a bimodal character that is distorted by poor income.

JEL Classification: C49, D39, O40, O53

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Data Envelopment Analysis (DEA) has become an established approach in the analysis of efficiency problems in both public and private sectors. The aim of this paper is to present a newly developed Distance Friction Minimization (DFM) approach based on the BCC (Banker-Charnes-Cooper) model in order to provide an appropriate efficiency-improving projection model in DEA. In this approach a generalized distance friction will be developed to assist a Decision Making Unit (DMU) in improving its efficiency by a proper movement towards the efficiency frontier surface.
Our DFM model is based on a generalized distance friction function and serves to assist a DMU in improving its performance by a proper movement towards the efficiency frontier surface. Standard DEA models use a uniform input reduction or a uniform output augmentation in the improvement projections, but our DFM approach aims to generate a new contribution to efficiency enhancement strategies by deploying a weighted projection function, while it may address both input reduction and output augmentation as a strategy of a DMU. A suitable form of multidimensional projection functions mapping out efficiency improvement is given by a Multiple Objective Quadratic Programming (MOQP) model in conformity with a Euclidean distance.
The above-mentioned extended DEA model will be empirically illustrated by using a data set on government-ordinance-designated cities in Japan, where the aim is to increase the efficiency of administration management in these cities, based on various input and output performance characteristics of these cities.

JFL classification: C44, C61, H72

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The many aspects of alien species management normally all involve decision making over time and under uncertainty. Therefore, in this note, we focus on an arbitrary seaport in a country called Home and we conduct a dynamic and stochastic analysis of two questions that have received insufficient attention in the extant literature on alien species management. First, we provide a particular way of classifying ships that enter the Home seaport from K possible countries in the time interval [0, t]. Second, we characterize the total cost of inspecting the ships that arrive in the Home seaport during the same time interval [0, t].

JEL Classification: F180, Q200, Q560

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This paper presents a study of private sector participation in Private Participation Infrastructure (PPI) projects, and forms a core part of the process known as the South Korean Social Capital Equipment Systems Investment Program. The study seeks to propose new directions for the current Private Participation Infrastructure System.
Three policy problems existing in the PPI system were analyzed. First, decision-making by negotiation in each project management model process was examined. Next, the process for the selection of private companies to run each project plan was evaluated. In the course of this analysis we make recommendations for restructuring the evaluation system that currently guides project planning and the selection process for private companies. Finally, faults within the PPI master plan are discussed and suggestions made as to how the plan can be improved.
This study identifies an improved approach to project management and redefines the structure and management of the PPI system. Emphasis on competition between the public and private sectors based on competitive market forces can assist the public sector, as the main user of the PPI system, in attempts to take the lead role in the proposed reform of management systems.

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Maintaining safe, effective and efficient travel during the winter is an important problem in snowy cold regions. For appropriate road infrastructure management, road administrators conduct various snow and ice control operations to provide good roadway conditions. However, limitations of budgets make it necessary to conduct these operations more efficiently. Therefore, our research group has undertaken development of a method for forecasting winter road conditions and maintenance support systems that provide the appropriate information to the road authorities. The project was undertaken in cooperation with other relevant organizations. For instance, the project involved the meteorological agency, an academic institution and road authorities. This system consisted of weather forecasts, the prediction of road surface conditions and provision of forecast results through the internet.
The project began observing the weather and road surface temperatures to develop a prediction model in 2004, and in 2005 the prototype started experimentally providing information to road authorities. This paper describes the conceptual framework and status of the project and also details the operational processes.

JEL Classification: R11, R49

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Four ASEAN countries Indonesia, Malaysia, the Philippines and Thailand are facing major air pollution problems due to rapid economic growth, urbanization and motorization. Mortality and respiratory diseases caused by air pollution are believed to be endemic in cities of these countries. Regulations and standards are the first requirement for reducing emissions from both fixed and mobile sources. In order to reduce vehicle emissions, governments of the four countries are making efforts to introduce vehicle emission regulations for new vehicles.
This paper attempts to estimate the 2015 car stock by emission regulation levels from past trends. Considering these car stock results, this paper emphasizes monitoring problems such as vehicle registration systems, inspection and maintenance (I/M) systems and fuel quality monitoring systems for vehicles in use. Monitoring problems in developing countries share similar characteristics such as a weakness in government initiatives and inadequate operation of government agencies, which results from a lack of human resources and analysis of facilities. Finally, this paper proposes a method to assure air quality improvement under the different shares of emission regulations in these four ASEAN countries and introduces an example of an evaluation method based on a policy survey to improve air quality.

JEL Classification: N75, Q53, Q56, R41, R48

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Onga River, which flows through the Chikuho area of Northern Kyushu, has supported Japanese manufacturing industries as the main way to transport coal. Even after the decline in the coal industry, this river is still a symbol of the past prosperity of the region.
However, nowadays it is known as one of the most polluted rivers in Japan. Residents in the river basin are losing their friendly feelings toward the river and regional ties are becoming weaker. Effective clean up policies and regional cooperation are needed.
To consider environmental and social improvements of the Onga River Basin, this research attempts to determine the ”stated preferences” of the residents. Questionnaires were posted to 1500 residents and approximately 30% collected. The responses of residents to the policy were analyzed by using a Conjoint Analysis.
Environmental improvement of the river is described in terms of three attributes, such as the quality of water, reformation of the water's edge and residents' network in the basin. Each attribute has two levels. Better or status quo for the water quality, more or less for the reformation and positively or negatively for the residents' network. Tax payments are also added to the attributes. Respondents are being asked to rank the combination of levels from the constituent attribute. Quality of the water has the most average importance. Residents' network is the least average importance, as a result.
Better quality of river water and reformation of the water's edge will not be able to be recognized without residents' willingness. Since there are not enough financial support from the government, people's self effort is required for the better environment. Educating people and getting people to become financially independent are the keys to promote the regional network and cooperation in the river basin.

JEL Classification: Q50, Q53, R19

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