Regional input-output analysis and policy simulation of environmental burdens induced by agriculture, forestry, fisheries and food industries

Abstract

Agriculture, forestry, fisheries and food industry products have provided the foundation for the Japanese diet as well as provided the Japanese society with the basis for living and cultural activities. Nevertheless, along with the development of the Japanese economy, the agriculture, forestry and fisheries sectors have undergone a considerable decline in production and employment. In addition, food safety has become an important problem for Japan. The Japanese government has adopted various measures to reverse the decline of Japan's food self-sufficiency ratio. In addition to economic aspects, growing concern over global environmental problems has supported the search for effective measures to reduce environmental burdens in primary industries. Comprehensive economic analyses of circumstances related to agriculture, forestry, fisheries and their related industries must be undertaken to cope with structural problems that confront Japanese primary industries. This study used input-output tables from segmented agriculture, forestry, fisheries, food and related industries to examine relations among regional economic structures and environmental burdens in Japanese primary industries. Furthermore, this study used simulation analyses to assess the effects of economic policies provided by the Ministry of Agriculture, Forestry and Fisheries of Japan on carbon dioxide emissions. This empirical study revealed that, according to the results of structural decomposition analysis, the growth of carbon dioxide emissions in primary industries has been induced mainly by emissions from food and marine fisheries industries. Simulation analysis of Japan's recent revitalization policies for primary industries has identified substantial increases in carbon dioxide emissions in local regions because of interregional trade. Therefore, we infer the necessity for measures to remove disparities among regions and also between industrial sectors in rural regions. Effective measures must be undertaken to achieve a balance between economic revitalization and a reduction in environmental burdens from primary industries in Japan.