New Frontiers in Regional Science: Asian Perspectives 24 Hiroyuki Shibusawa Katsuhiro Sakurai Takeshi Mizunoya Susumu Uchida E ditors Socioeconomic Environmental Policies and Evaluations in Regional Science Essays in Honor of Yoshiro Higano New Frontiers in Regional Science: Asian Perspectives Volume 24 EditorinChief YoshiroHigano,UniversityofTsukuba ManagingEditors MakotoTawada(GeneralManagingEditor),AichiGakuinUniversity KiyokoHagihara,BukkyoUniversity LilyKiminami,NiigataUniversity EditorialBoard SakaiYasuhiro(AdvisorChiefJapan),ShigaUniversity YasuhideOkuyama,UniversityofKitakyushu ZhengWang,ChineseAcademyofSciences YuzuruMiyata,ToyohashiUniversityofTechnology HiroyukiShibusawa,ToyohashiUniversityofTechnology SaburoSaito,FukuokaUniversity MakotoOkamura,HiroshimaUniversity MorikiHosoe,KumamotoGakuenUniversity BudyPrasetyoResosudarmo,CrawfordSchoolofPublicPolicy,ANU Shin-KunPeng,AcademiaSinica GeoffreyJohnDennisHewings,UniversityofIllinois EuijuneKim,SeoulNationalUniversity SrijitMishra,IndiraGandhiInstituteofDevelopmentResearch AmitrajeetA.Batabyal,RochesterInstituteofTechnology YizhiWang,ShanghaiAcademyofSocialSciences DanielShefer,Technion-IsraelInstituteofTechnology AkiraKiminami,TheUniversityofTokyo AdvisoryBoard PeterNijkamp(Chair,ExOfficioMemberofEditorialBoard),FreeUniversityAmsterdam RachelS.Franklin,BrownUniversity MarkD.Partridge,OhioStateUniversity JacquesPoot,UniversityofWaikato AuraReggiani,UniversityofBologna NewFrontiersinRegionalScience:AsianPerspectives Thisseriesisaconstellationofworksbyscholarsinthefieldofregionalscienceand inrelateddisciplinesspecificallyfocusingondynamisminAsia. Asia is the most dynamic part of the world. Japan, Korea, Taiwan, and Singapore experiencedrapidandmiracleeconomicgrowthinthe1970s.Malaysia,Indonesia, and Thailand followed in the 1980s. China, India, and Vietnam are now rising countries in Asia and are even leading the world economy. Due to their rapid economic development and growth, Asian countries continue to face a variety of urgentissuesincludingregionalandinstitutionalunbalancedgrowth,environmental problems, poverty amidst prosperity, an ageing society, the collapse of the bubble economy,anddeflation,amongothers. Asian countries are diversified as they have their own cultural, historical, and geographicalaswellaspoliticalconditions.Duetothisfact,scholarsspecializingin regionalscienceasaninter-andmultidisciplinehavetakenleadingrolesinproviding mitigatingpolicyproposalsbasedonrobustinterdisciplinaryanalysisofmultifaceted regionalissuesandsubjectsinAsia.Thisseriesnotonlywillpresentuniqueresearch resultsfromAsiathatareunfamiliarinotherpartsoftheworldbecauseoflanguage barriers,butalsowillpublishadvancedresearchresultsfromthoseregionsthathave focusedonregionalandurbanissuesinAsiafromdifferentperspectives. The series aims to expand the frontiers of regional science through diffusion of intrinsicallydevelopedandadvancedmodernregionalsciencemethodologiesinAsia andotherareasoftheworld.Readerswillbeinspiredtorealizethatregionalandurban issuesintheworldaresovastthattheirestablishedmethodologiesstillhavespacefor developmentandrefinement,andtounderstandtheimportanceoftheinterdisciplinary andmultidisciplinaryapproachthatisinherentinregionalscienceforanalyzingand resolvingurgentregionalandurbanissuesinAsia. Topicsunderconsiderationinthisseriesincludethetheoryofsocialcostandbenefit analysis and criteria of public investments, socioeconomic vulnerability against disasters,foodsecurityandpolicy,agro-foodsystemsinChina,industrialclustering inAsia,comprehensivemanagementofwaterenvironmentandresourcesinariver basin,theinternationaltradeblocandfoodsecurity,migrationandlabormarketin Asia,landpolicyandlocalpropertytax,informationandcommunicationtechnology planning, consumer “shop-around” movements, and regeneration of downtowns, amongothers. Moreinformationaboutthisseriesathttp://www.springer.com/series/13039 Hiroyuki Shibusawa • Katsuhiro Sakurai Takeshi Mizunoya • Susumu Uchida Editors Socioeconomic Environmental Policies and Evaluations in Regional Science Essays in Honor of Yoshiro Higano 123 Editors HiroyukiShibusawa KatsuhiroSakurai ToyohashiUniversityofTechnology RisshoUniversity Toyohashi,Aichi,Japan Shinagawa-ku,Tokyo Japan TakeshiMizunoya UniversityofTsukuba SusumuUchida Tsukuba,Ibaraki IbarakiUniversity Japan Inashiki,Ibaraki Japan ISSN2199-5974 ISSN2199-5982 (electronic) NewFrontiersinRegionalScience:AsianPerspectives ISBN978-981-10-0097-3 ISBN978-981-10-0099-7 (eBook) DOI10.1007/978-981-10-0099-7 LibraryofCongressControlNumber:2016946970 ©SpringerScience+BusinessMediaSingapore2017 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof thematerialisconcerned,specificallytherightsoftranslation,reprinting,reuseofillustrations,recitation, broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,andtransmissionorinformation storageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilarmethodology nowknownorhereafterdeveloped. Theuseofgeneraldescriptivenames,registerednames,trademarks,servicemarks,etc.inthispublication doesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfromtherelevant protectivelawsandregulationsandthereforefreeforgeneraluse. Thepublisher,theauthorsandtheeditorsaresafetoassumethattheadviceandinformationinthisbook arebelievedtobetrueandaccurateatthedateofpublication.Neitherthepublishernortheauthorsor theeditorsgiveawarranty,expressorimplied,withrespecttothematerialcontainedhereinorforany errorsoromissionsthatmayhavebeenmade. Printedonacid-freepaper ThisSpringerimprintispublishedbySpringerNature TheregisteredcompanyisSpringerScience+BusinessMediaSingaporePteLtd. Preface This book is a volume of essays celebrating the life and work of Yoshiro Higano, ProfessorofEnvironmentalPolicy,DoctoralPrograminSustainableEnvironmental Studies, Graduate School of Life and Environmental Sciences, University of Tsukuba. Japan. Prof. Higano’s research strongly focuses on the comprehensive evaluation ofresourcesandresearchcontentfordecisionscienceandengineering, includingsimulationmodelingforenvironmentalqualitycontrol,theevaluationof environmentalremediationtechnologies,integratedriver(lake)basinmanagement, andsynthesizedenvironmentalpolicy. Prof. Yoshiro Higano has provided long and outstanding services to the devel- opmentandorganizationoftheRegionalScienceAssociationInternational(RSAI), the Pacific Regional Science Conference Organizations (PRSCO), and the Japan SectionoftheRSAI(JSRSAI).Prof.Higanoservedasthevice-presidentofRSAI from2008to2010andthepresidentofRSAIfrom2010to2012.Hemadeefforts as the executive secretary of PRSCO from 1998 to 2010. He supported the devel- opment and the organization of Regional Science in Pacific Rim area and Japan. ThelocalsectionsofChile,Colombia,andBangladeshwereestablishedandwere jointedtoPRSCOandRSAI.InChina,threeinternationalconferencesoftheRSAI onRegionalScienceandSustainableRegionalDevelopmentweresuccessfullyheld with his strong support. Prof. Higano organized pacific conferences of RSAI and PRSCOsummerinstituteswhichwereheldinTokyo(1983),inTsukuba(1996),in Nagoya (1998), in Tokyo (2005), and the world congress of RSAI held in Tokyo (1996). Prof.HiganosupportedthehumannetworkintheRSAIworldbyofferingmany partiesandsocialandprivateevents.HeinvitedmanyRSAIcolleaguestoJSRSAI meetings. He provided genuine hospitality for RSAI development. In Japan, Prof. Higano organized and supported many local conferences as the JSRSAI executive director. Many young scholars and students were brought up by his powerful support. He contributed greatly to the progress of JSRSAI for long time. He also servedasthepresidentofJSRSAIfrom2012to2016. v vi Preface Thiseditedvolumecoversawiderangeofregionalscienceapproaches,theory, policy, evaluation, modeling, simulation, and practice. It is a valuable reference workforresearchers,scholars,policymakers,andstudentsinthefieldofregional science. This volume celebrates Prof. Higano’s contributions to the JSRSAI, PRSCO,andRSAI.Essaycontributorsincludehisformerstudentsandawidearray ofregionalscientists,eachwithapersonalconnectiontoProf.Higano. Three parts of this book from RSAI, PRSCO, and JSRSAI contributors are devoted to Prof. Higano. In Part I, contributors are discussing topics of regional science in view of global region (except Asia-Pacific and Japan). In Part II, contributorsexaminesawiderangeoftopicsofsocial,economic,andenvironmental issuesinAsia-Pacificregions.InPartIII,topicsarefocusedonurbanandregional economyandtheenvironmentalandenergyissuesinJapan. PartI:GlobalPerspectives Antoine Bailly and Lay Gibson (Chapter “Regional Science in the Twenty-First Century”)giveadirectiontoanewregionalscience.Theyproposenewdimension forestablishingthenewregionalscience. DavidPlane(Chapter“TheSustainabilityofDemographicProgressAroundthe World”) examines the concept of demographic progress and speculates about the typesofregionalscienceandpopulationgeographicresearchthatwillbecritically neededaswetransitionintoapost-demographictransitionworld. Marco Modica, Aura Reggiani, and Peter Nijkamp (Chapter “Methodological Advances in Gibrat’s and Zipf’s Laws: A Comparative Empirical Study on the Evolution of Urban Systems”) explore the methodological advances in Gibrat’s and Zipf’s law. They examine empirical experiments based on case studies on the dynamicsoftheurbanpopulationoffivecountries:Botswana,Germany,Hungary, Japan,andLuxembourg. Peter Batey (Chapter “How Can Cross-Sector Partnerships Be Made to Work Successfully? Lessons from the Mersey Basin Campaign (1985–2010)”) gives lessons from the Mersey Basin Campaign. The experience of public-private vol- untary partnership in the United Kingdom over 25 years is discussed as a former leader.Factorsforsuccessfulpartnershipareshown. Philip Morrison and Ben Beer (Chapter “Consumption and Environmental Awareness: Demographics of the European Experience”) address the relationship betweentheconsumer’sageandtheirlevelofenvironmentalawarenesstheybring totheirconsumptiondecisions.Theirstudyisbasedonalargesamplesurveyfrom 28countriesacrossEurope. Roberta Capello and Giovanni Perucca (Chapter “Cultural Capital and Local Development Nexus: Does the Local Environment Matter?”) discuss the relation- ship between tangible cultural capital and regional development. They show the impact of tangible cultural elements, physical cultural heritage, and the cultural industry,ontheeconomicgrowthofItalianNUTS2regions. Preface vii Chunhua Wang, Jean-Claude Thill, and Ross Meentemeyer (Chapter “Who WantsMoreOpenSpace?StudyofWillingnesstoBeTaxedtoPreserveOpenSpace inanUrbanEnvironment”)examinepeople’swillingnesstosupporttaxincreasefor thepreservationofopenspaceinafast-growingurbanareabasedontheadataset collectedthroughasurveyconductedintheCharlotte,NorthCarolina,USA. Amitrajeet Batabyal (Chapter “On Capital Taxation and Economic Growth and WelfareinaCreativeRegion”)studiestheeffectsofphysicalcapitalorinvestment income taxation on economic growth and welfare in a creative region. A creative regionisdescribedbytheRamsey-Cass-Koopmansmodel. KieranDonaghy(Chapter“SomeExtensionstoInterregionalCommodity-Flow Models”)introducesseveralextensionstoextantcommodity-flowmodels,including explicittreatmentoftradeinintermediategoods,so-calledneweconomicgeography behavioralfoundationsforproductionandinterindustryandinterregionaltrade,and endogenousdeterminateofcapitalinvestmentandemployment. Tomaz Ponce Dentinho (Chapter “Evaluation of Ecosystem Services Through Revealed Policy Preferences: Exchange Rates Between Scientific Currencies”) proposes a methodology able to estimate the decision rules revealed by public choicebycombiningecological,environmental,socialandeconomicvaluationsand applied for three types of decision, the designs of a terrestrial protected area, land useplanandamarineprotectedareasinislandsofPortugal. KatsuhiroSakurai(Chapter“OptimalInternationalInvestmentPolicyfortheSea EnvironmentinEastAsia:CaseStudyoftheSeaofJapan”)discussesemissionof land-based water pollutants created by socioeconomic activity in the coastal area (Japan,China,SouthKorea,andRussia)oftheSeaofJapanbyusingamultiregional socioeconomic environmental system model. He derived the optimal international investmentpolicyandtheemissionreductionrate. PartII:Asia-PacificPerspectives William Cochrane, Arthur Grimes, Philip McCann, and Jacques Poot (Chapter “SpatialImpactsofEndogenouslyDeterminedInfrastructureInvestment”)estimate the impact of local authority infrastructure spending on regional economic and demographicoutcomeswithinNewZealand.Byusingaspatialestimationmethod- ology,theyshowasignificantspatialdependenceininfrastructureinvestment. James Giesecke and John Madden (Chapter “Migration Responses to a Loss in Regional Amenities: An Analysis with a Multiregional CGE Model”) examine demographic and economic effects of a relative decline in a region’s amenities by usingathree-regiondynamicmultiregionalcomputablegeneralequilibriummodel withlaggedmigrationresponsesinAustralia. Mia Amalia, Budy Resosudarmo, Jeff Bennett, and Arianto Patunru (Chapter “Valuing the Benefits of Cleaner Air in Jakarta Metropolitan Area”) estimate the benefit of having cleaner ambient air for the Jakarta Metropolitan Area’s (JMA) viii Preface citizens. Choice modeling approach and conditional logic model are applied into casestudiesinIndonesia. Yoko Mayuzumi and Takeshi Mizunoya (Chapter “Study of Fair Trade Products for Regional Development -Case of Bali, Indonesia”) conducted surveys that are expectedtobeusefultoimprovemanagementoffairtradeproductsinagroforestry projectsinIndonesia.Theyfindanappropriatepricefortheseproducts. Elizabeth Aponte, Emma B. Castro, and Lilian A. Carrillo (Chapter “Social PublicSpendingintheCountriesThatComprisetheAndeanCommunityofNations (CAN)”) examine the relationship between the social public spending and the improvement of quality of life condition in the Andean Community of Nations. They show a social spending growing, but an in adequate quality of life persists allowingtoargueforapromisingfuture. Sutee Anantsuksomsri, Nattapong Puttanapong, and Nij Tontisirin (Chapter “Global Backward and Forward Multiplier Analysis: The Case Study of Japanese AutomotiveIndustry”)analyzetheglobalbackwardandforwardmultiplierfocusing on the Japanese automotive industry based on the global input-output table. By thestructuralpathanalysis,thepathsofglobalvaluechainofJapaneseautomotive industryareshown. ZhenhuaChenandKingsleyHaynes(Chapter“TransportationInfrastructureand EconomicGrowthinChina:AMeta-analysis”)gainacomprehensiveunderstanding of the linkages between transportation infrastructure and economic growth with a focus on China using a meta-analysis. They identify the cause for the variation of outputestimatesbasedonastatisticalinvestigation. Guoping Mao’s work (Chapter “Statistical Analysis of Sustainable Livelihood in China”) establishes a statistical indicator system of China’s livelihood from the perspectiveofsustainability.Thisstudyindicatesfiveurgentproblemstobesolved regardingtheChineselivelihood. Bin Li, Wen-Hong Cheng, and Cheng-Long He (Chapter “Green Environment Social Economic System for Urban-Rural Integration”) highlight a small-scale green water environmental social economic system in the context of New Normal forChina’surban-ruralintegration.Theyalsodiscussthelandandinfrastructurein Jiaxingandgivesomerecommendationsonthesystem. Md. Fakrul Islam and Wardatul Akmam (Chapter “Climate Change and Liveli- hood Adaptation Strategies of Farmers in Northern Bangladesh”) focus on the problemsofsocio-environmentalvulnerabilityduetoclimatechangeandlivelihood adaptationstrategiesoffarmersinNorthernBangladesh.Basedontheanalysisofa survey,theygivesomerecommendations. Wardatul Akmam and Md. Fakrul Islam (Chapter “Nongovernment Organiza- tions’ Contributions to Poverty Reduction and Empowerment of Women through Microcredit: Case of a Village in Gaibandha District, Bangladesh”) discover the impactsofNGOactivities(particulardisbursingmicrocredit)onwomeninavillage inGaibandhaDistrict,Bangladesh.Theyfindthatthoughsomeinstancesofpositive outcomes of micro credit on poverty reduction and empowerment indicators are observed,itisnotasperexpectation. Preface ix PartIII:JapanPerspectives YasuhiroSakai(Chapter“OnEnvironmentalRiskManagement:TheInteractionsof EconomicandNoneconomicFactors”)proposesageneraltheoreticalframeworkfor environmentalriskmanagementfromanewpointofview.Heattemptstocombine botheconomicandnon-economicfactorsintothetraditionalexpectedutilitytheory. Makoto Tawada and Tomokazu Sahashi work (Chapter “Product Design for Recycling and Recycling Industry”) is the analysis of a recycling industry in an economy where the quality of product design is incorporated. In three types of market failure, monopoly power, environmental damage, and cost for recycling, threepolicyinstrumentsarederivedinatheoreticalsetting. MorikiHosoe(Chapter“OptimalPolicyandtheThreatofSecession”)givesan analysis of the possibility of integration and secession between a majority region and a minority region. It is shown that the change of two forms of governance, i.e.,centralizedintegrationordecentralizedintegration,dependsonthecostlevelof publicgoods. Yuzuru Miyata, Hiroyuki Shibusawa, and Tomoaki Fujii (Chapter “Economic ImpactofCO EmissionsandCarbonTaxinElectricVehicleSocietyinToyohashi 2 City in Japan”) explore the economic impacts of promotion and realization of an electric vehicle society in Toyohashi City in Japan. Using a regional CGE model, the impacts of subsidies for EVs promotion and carbon tax for CO reduction are 2 simulated. Geoffrey J.D. Hewings and Michael Sonis (Chapter “Initial Explorations into the Spatial Structure of the Japanese Regional Economies”) present the analytical approaches for input-output tables over time to visualize and compare economic structure. Their approach is applied to the interregional input-output table and the empiricalfindingsforJapanarepresented. Lily Kiminami and Akira Kiminami (Chapter “Rural and Agriculture Develop- mentinRegionalScience”)discussthetrendsandtheoutlookofthestudyofrural and agriculture development in regional science. They introduced the theoretical frameworkofanewapproachofstrategicdevelopmentforregionalagriculture. Suminori Tokunaga, Mitsuru Okiyama, and Maria Ikegawa (Chapter “Impact of Climate Change on Regional Economies Through Fluctuations in Japan’s Rice Production Using Dynamic Panel Data and Spatial CGE Model”) evaluate the impact of climate change on regional economies through fluctuation in Japan’s riceproductionusingspatialCGEmodel.Theyshowthatglobalwarming-induced climatechangehasdifferentimpactsoneachregionanditcreatesregionaleconomic disparities. Saburo Saito, Mamoru Imanishi, Kosuke Yamashiro, and Masakuni Iwami (Chapter “Risk Evaluation of Social Decision Process: A Two-Stage Auction GameModelforJapaneseUrbanRedevelopmentProcedure”)formulatetheurban