Economic Valuation of Public Works in Remoter Mainly Rural Districts from the Viewpoint of Needs of Urban Dwellers
In: Journal of the City Planning Institute of Japan, Band 36, Heft 0, S. 367-372
ISSN: 2185-0593
4 Ergebnisse
Sortierung:
In: Journal of the City Planning Institute of Japan, Band 36, Heft 0, S. 367-372
ISSN: 2185-0593
Small-scale renewable electricity generation projects have the potential to address not just the need to reduce greenhouse gas emissions to combat climate change, but also to provide local, sustainable economic and community revitalization. In this paper, we have proposed a small hydroelectric generation project with citizen participation which includes cooperation in some activities such as cleaning and patrols, and have evaluated the project economically by using the regional input-output (I-O) analysis in which the willingness to work (WTW) is incorporated. The WTW for the project have been estimated by using the conjoint analysis as a function of its various attributes, namely revenue from the project's electricity sales, profits earned for the local community, and rewards given to contributors. The results show that the amount of WTW provided by resident volunteers will increase with increasing unit value of reward, but the amount of reward paid to volunteers will also increase. On the other hand, the operating income of the establishment that has contracted maintenance of the small hydroelectric supply sector will decrease, and its influence will spread through the inter-industry relations. Then, we have analyzed such economic ripple effect by using the regional I-O table for analysis of small hydroelectric generation project. By considering the range of the "unit value of reward" and the "substitution rate of resident volunteers", even if the project is deficit, we have found a good countermeasure which can be expected positive effects. As a result, it is possible to reduce the subsidies of regional governments with respect to the project, and it is possible to devote that amount of budget to improvement of other administrative services. Although introduction of volunteer activities is finished when the amount of WTW exceeds the consignment work load in this case study, more volunteer activities may be introduced if external economic benefits of volunteers are expected. For example, if the bond of community are strengthened by that residents participate in volunteer activities, the bond strengthened can compensate for the lack of government services such as disaster prevention and welfare, and improvement of resident satisfaction may be expected. By evaluating such external economic benefits and practicing social cost benefit analysis, it is possible to discuss that more volunteer activities should be introduced or not. Such external economic benefits can be measured by the opportunity cost of volunteer activities or the time value of WTW, but this matter will be discussed at the next stage. When this type of small hydroelectric generation project utilizing resident volunteers is introduced, household utility levels increase. Understanding the dynamism between these factors can allow regional governments to adapt the scheme to best fit the needs of individual regions.
BASE
Small-scale renewable electricity generation projects have the potential to address not just the need to reduce greenhouse gas emissions to combat climate change, but also to provide local, sustainable economic and community revitalization. Japanfs experience following the Great East Japan Earthquake has also demonstrated the potential fragility of too-heavy reliance on large-scale power plants. Small-scale projects, such as those using solar, wind, or hydroelectric resources, can thus also boost a regionfs energy self-sufficiency and ability to withstand natural disasters. In addition, small-scale operations mean that areas unsuitable to larger plants or installations can become productive - in the case of hydroelectric plants, as discussed in this paper, smaller streams can be tapped for power, with the additional benefit of not requiring costly dam construction. These benefits indicate the great potential for small-scale electricity generation projects, and this paper explores their economic feasibility in practice, using a hypothetical case study in a small regional Japanese city. The hypothetical plant is intended to provide both environmental and economic benefits to the local community, and the various trade-offs between levels of each are studied. We evaluate the project economically by using the regional I-O (input output) analysis in which the WTW (willingness to work) is incorporated. The WTW results for the project have been estimated by using the conjoint analysis as a function of its various attributes, namely revenue from the projectfs electricity sales, profits earned for the local community, and rewards given to contributors. The results show that if the reward for volunteer activity is set higher, the amount of volunteer labor is increased, and the operating surplus of the project is also increased. As a result, it is possible to reduce the subsidies of regional governments with respect to the project, and it is possible to devote that amount of budget to improvement of other administrative services. Subsequently, when this type of small hydroelectric generation project with citizen participation is introduced, household utility levels increase. Understanding the dynamism between these factors can allow regional governments to adapt the scheme to best fit the needs of individual regions.
BASE
In: Journal of the City Planning Institute of Japan, Band 22, Heft 0, S. 571-576
ISSN: 2185-0593