Recently, many municipalities make use of renewable energy such as wooden biomass fuels and solar energy which contribute to CO₂ mitigation for a sustainable society. These environmental resources are usually abundant in rural regions, so economic vitalization in rural regions is expected with use of these resources.
The purpose of this study is to quantitatively show the magnitude of economic contributions to the circulation of renewable resources within a region as well as export to other regions. As a first step to accomplish this purpose we construct an IO table of Maniwa City incorporating biomass trade by an interview survey approach. In the interpretation of regional economic effects, we propose two new concepts, ‘direct effect by energy substitution’ and ‘indirect effect by regional circulation’. In order to correctly calculate those effects, we also propose a new original method to construct IO tables for the economic situation when biomass energy usage is not introduced.
Empirical findings show that regional biomass production and intraregional usage yield sufficient circulation effects as well as substitution effects and income reservation effects from relatively lower prices for biomass energy in the region.

JEL Classification: C67, Q57, R11, R15

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This paper attempts to investigate the performance of non-profit organizations under vertical restraints. We examine the problems with information transmission when a profit-maximizing producer vertically restricts non-profit organization production with contributed funds, and the organizations can choose the investment level of the funds. Non-profit organization production is defined here as “non-profit social activities” undertaken for the security of drinking water, the reforestation of desertified land, the removal of land mines, and similar activities. If the degrees of production efficiency of organizations are high enough, information transmission is not beneficial for non-profit organizations, and hence information sharing may not develop between the producers and the organizations through social activities. The prospective level of activity can be improved by information sharing when the scheme of information sharing targets non-profit organizations that are operating below a critical level of production efficiency.
The implications of this result are the potential positive and negative effects on the non-profit organization. When uncertainty of production becomes greater, non-profit organizations are motivated to monopolize information and non-profit organization behavior becomes more random, reducing the expected output. This negative effect can be reduced by passing information on to producers. Information sharing can be considered as a form of risk-sharing. Given the positive and the negative effects, non-profit organizations are faced with a decision to either monopolize or to share information. When certain conditions are fulfilled, non-profit organizations voluntarily transmit information to profit-maximizing producers. Producers benefit from non-profit organizations by using information sharing as social alliances. The model in this paper may not be generalized, but it does present an interesting perspective for “cause-related marketing”.

JEL Classification:D82, L31, L42, M31

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The tax revenue of 46 prefectures excluding the Tokyo Metropolitan Government amounted to ¥11.9 trillion in FY2009. This was 96.0% of the determined collection amount. The collection expenditure, ¥409 billion, was equivalent to 3.45% of the revenue. Raising the tax revenue requires increasing collection costs at the same time.
If we ignore the subscripts representing the prefectures, the determined collection amount is denoted as ft, tax collection costs as tc, revenue as tr, and arrear np is given as np=ft－tr. The function of tc to tc is expressed as tc=tc, that of tr to tc as tr=atc where a means the slope tr/tc── the relationship between tc and tr should be linear ──, and np to tc as np=ft－atc. We can derive the formula tc^*=ft/(1+a), where np^*=tc^*. Through additional tax collection expenditures, the net revenue tr－tc would marginally increase where np exceeds tc, but would marginally decrease where np<tc. If tc^* is calculated at the point np^*=tc^*, tr^*=atc^* and np^*=ft－tr^* are given. Therefore, we can obtain tc^*, tr^* and np^* at point np^*=tc^*.
Suppose that 21 prefectures where np>tc adds the tax collection expenditure to point tc^*, while 25 prefectures where np<tc reduces the costs to point tc^* maintaining the present tr. As the calculated result of all prefectures, the net revenue would increase by ¥73 billion and the ratio of tax collection rise to 97.20% with addition of a collection expenditure of ¥0.8 billion.
The latter prefectures have less rooms for increasing the tax revenue. They must consider creation of an alliance with municipalities for tax collection as well as endeavor to reduce the costs.

JEL Classification: H21, H71

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Historical parks, which have cultural properties such as site of forts or castles, sites of palaces, ancient tombs, monumental dwelling houses and old gardens, are expected to attract many tourists as major resources for revitalizing regional economies. However, various problems such as deterioration of management level and resources, bad effects caused by not only overuse but also underuse, barriers for handicapped persons and alien species are threatening the parks. For instance, over concentration of visitors during the cherry-blossom season causes damage to trees, traffic jams, litter and other problems.
Generally, the numbers of visitors in tourist sites show large gaps between on-season and off-season. Overuse causes damage to historical trees and ruins. Decrease of visitors results in indifference and a low budget. Balance between conservation and use sustains historical parks. For optimum use of these parks, we must know the relationships between the trends of visitors and problems through studies on the actual conditions. This paper reports the relationships between the seasonal fluctuation of visitors and various problems in historical parks through the results of a questionnaire on historical parks.
The results of the correlation analysis suggest the following. Parks in which visitors are increasing have problems caused by visitor concentration. These problems are related to the capacity of toilets and parking lots, quality of use （manners and litter）, and quality of resources such as historical trees. Appropriate monitoring of the numbers of visitors, especially with attention for visitor concentration in the spring, is necessary. On the other hand, parks in which visitors are decreasing also have problems such as employment, unconcern, shortage of management expenses and dullness. Promotion of both control of visitors during the high-season and increase of people’s interest in the resources, especially in off-season, are essential. However, half of the parks do not have sufficient data about the number of visitors, so the collection of quantitative data about visitors is required. Measures to brake the vicious cycle are essential.

JEL Classification: H49, Q3, Q56

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Recently, the concept of City Promotion （CP） has spread in many cities in response to a perceived urban decay crisis. CP is an activity whereby a city’s various stakeholders cooperate to promote the area’s events, facilities and unique attributes both locally and regionally. This regional effort by multi-stakeholders is generally called cooperation. Effectiveness in cooperative CP requires all participants to have a positive attitude towards particular and common perceptions of such activities as motivation, goal-achievement and problem solving.
In earlier CP discussions, the parties involved were entirely focused on evaluation by single suggestions, particularly among CP initiatives where efforts were focused on a variety of fields. Specifically, it was difficult to construct a framework regarding normative concepts and make an evaluation of cooperation. Towards CP evaluation of cooperation, an approach supporting mutual learning and growth among stakeholders is suggested. Hence, based on a theory of knowledge creating management, we focus on the sharing of implicit knowledge among citizens. It was assumed that sharing implicit knowledge among stakeholders involved will enhance cooperative abilities and further advance CP in the region. Therefore, this study aimed to analyze actual conditions regarding mutual perceptions among stakeholders in a pioneer region for CP, and clarify the factors that function in effective CP.
Hamamatsu City in Shizuoka Prefecture was chosen as the study area because it is a pioneering area for CP, and its plan is content-rich for selecting target stakeholders in this study. Interviews were conducted for six stakeholders, including the Hamamatsu municipal government and the chamber of commerce, each having a key role in CP. In determining the questionaire items, we classified the stakeholders perception in terms of principles, actions and results, to better understand the participant’s complex perceptions. Furthermore, we analyzed the actual conditions of the three perspectives.
As a result, following the actual conditions of CP, the importance of mutual perceptions was identified. First, because a proactive approach by the city administrators has had a positive influence on the development of participation among stakeholders with poor motivation, the importance of a shared perception concern for city problems and the significance of CP were presumed. Secondly, because each stakeholder has been developing real activities under the visible division of roles, the importance of mutual understanding concerning each role was supposed. Thirdly, because each stakeholder had many perceptions about negative appraisals, regardless of developing activities, it is believed that a shared perception about mutual problems and future visions is important for developing effective CPs.
Future studies should include a comparison among cities with different regional characteristics to provide a generalization for the construct clarified in this study.

JEL Classification:Z18, Z19

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This paper presents a statistical method to identify regions where similar manufacturing enterprises exist toward developing partner regions as a countermeasure against possible disasters. Following a major disruptive event （e.g., earthquake, hurricane, or influenza pandemic）, a manufacturing enterprise may be heavily damaged forcing a temporary cessation of production. An effective counter action available to maintain business involves relocating production and shipment procedures to alternative sites or consigning some portion of the business activities to other companies with similar or almost identical industrial techniques and production assets. This typical approach is generally referred to as a business continuity plan or business continuity management （BCP/BCM）. However, adopting such a strategy is difficult for many small- and medium-sized enterprises; hence, the author has recommended some public organizations or establishments to plan “regional BCP” in preparation for a potential disastrous event. An important concept of the regional BCP is the development of an interregional mutual assistance partnership for quick recovery of a damaged industry in the affected region following a disaster. Therefore, local governments may be appropriate as the primary agency for such activities. Because proper and sufficient resources should be sent to the affected area for recovery, its partner region should have a similar industrial structure and scale. Further, cooperating regions should be geographically separated, but within an appropriate distance between each other, to avoid being struck simultaneously while maintaining a partnership that allows low-cost and rapid access after an event. In an attempt to establish an adequate relationship between two regions, 71 variables from the establishment and enterprise census, population census, and industrial statistics were chosen as indices for identifying industrial structures of regions in a wider area. Principal component analysis was applied to these variables, and correlation coefficients were calculated from the principal component scores with eigenvalues greater than one. As a case study, we focused on Ojiya City, Niigata, which was affected by a massive earthquake in 2004, resulting in heavy damages to many manufacturing facilities in the region, and attempted to find its partner regions using the aforementioned method. As a result, higher correlation coefficients indicated greater similarity of industrial structures and commonality among customers between companies in different regions. Finally, regions having relatively high correlation coefficients to each other have a strong incentive to form mutually cooperative and reciprocally beneficial partnerships for disaster reduction.

JEL Classification:C43, H77, H84, L38, R12

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Local railway lines in Japan were developed according to the Light Railway Construction Act and the amended Railway Construction Act. However, after the Pacific War, a large number of local railway lines have been reconstructed as organizations change to bus services or are abolished. Recently, according to the deregulation of supply and demand adjustments in 2000, reconstruction of local railway lines is ongoing. In the case of local railway reconstruction, most studies generally carry out social benefit analysis （cost-benefit analysis）, demand forecasting, analysis of reconstruction （revitalization） schemes and similar studies. However, there are few reports on these themes.
Reconstruction of a local railway line should bring social impacts, so analyze of the reasons for the cases of successful revitalization by quantitative methods is necessary. We focused on the revitalization of the Kishigawa Line in Wakayama Prefecture. There is much information and statistical data on the Kishigawa Line. We studied and analyzed the following four points. 1） Detailed analysis of the population data along the Kishigawa Line. In this analysis, 500 m mesh population data were converted to 100 m mesh by the land use parameter. 2） Review of the reconstruction process of Kishigawa Line. We analyzed decision making by the original operator, the new operator and the local governments. 3） Analysis of the reason for the successful reconstruction and revitalization of the Kishigawa Line. 4） Extraction of structural problems on local railways, and components needed to revitalize railways by this case study. In the revitalization of the Kishigawa Line, the number of passengers increased, and the balance of payments was improved. Therefore this can be defined as a successful case.
We are convinced this case study can provide valuable knowledge, because the revitalization of the Kishigawa Line has many factors typical for public transportation problems in Japan. These factors show the importance of data analysis by a 100 m mesh evaluation of the population in the area around the station, social benefit analysis （cost-benefit analysis）, and trinity coordinated management by railway operators, local governments and supporters.

JEL Classifications: O18, R14, R42

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In recent years, various areas of Japan have promoted their regional economies by trying to increase visitors from foreign countries, expecting their economic activities to boost the regional economic development/growth. According to the statistics of JNTO （Japan National Tourism Organization）, 8.61 million people from foreign countries visited Japan in 2010, which is the highest number ever. In the Hokuriku area consisting of Toyama, Ishikawa and Fukui Prefectures, located in the central area of Japan and facing the Sea of Japan, over 100 thousand foreign people visited there to work, participate in business meetings, and see the attractive places in this area of Japan. However, the number of visitors is still small and less than other popular places in Japan. In that sense, the Hokuriku area still has the capability to promote more visits by foreigners.
In this report, from the above viewpoint, the economic （ripple） effects in the Hokuriku area based on the economic activities of visitors from fifteen main foreign markets are analyzed using regional statistical data and regional I-O tables. According to the analysis for the Hokuriku area, markets that have a potential economic effect （per person and stay） include Hong Kong, Singapore and Taiwan. Australia also appears to have a high economic effect. In addition, the economic ripple effects by the total number of visitors in 2010 showed that South Korea, China and Taiwan from which many visitors come and stay in the Hokuriku area every year, have large economic effects. In addition, some inbound policies have been practiced by each prefecture. However, there is no importance of the prefectural borders or municipal governments for foreign visitors, so a wide cooperation between governments for inbound policies is significantly important. From this point of view, the cooperation of three prefectures in the Hokuriku area is relatively effective, especially for the promotion of potential markets, according to the policies in practice.
Finally, problems still remain including improvement of the regional statistics and cooperation on analysis and practice in the field.

JEL Classification:R11, R15, R58

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