Updated on 2025/04/30

写真a

 
Akihiro Otsuka
 
Organization
Graduate School of International Management Department of International Management Professor
School of Economics and Business Administration Department of Economics and Business Administration
Title
Professor
Profile

横浜市立大学教授(専任教授)。博士(経済学)。電力中央研究所主任研究員,横浜市立大学准教授を経て現職。専門は地域科学(Regional Science)。国際学術誌の編集委員を務め,国内外の学会での受賞歴を有する。岡山県出身。

External link

Degree

  • Ph.D. in Economics ( 2005.3   Okayama University )

Research Interests

  • Regional Sustainability

  • Total Factor Productivity

  • Productivity Analysis

  • Efficiency Analysis

  • Energy Economics

  • Interregional Networks

  • Agglomeration Economies

  • Borrowed Size

  • Spatial Economics

  • Regional Economics

Research Areas

  • Humanities & Social Sciences / Economic statistics  / Productivity and Efficiency Analysis

  • Humanities & Social Sciences / Economic policy  / Spatial Economics and Regional Policy

  • Humanities & Social Sciences / Area studies  / Regional Economy

Education

  • Okayama University   Graduate School of Humanities and Social Sciences

    2002.4 - 2005.3

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    Country: Japan

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  • Okayama University   Graduate School of Economics

    2000.4 - 2002.3

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    Country: Japan

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  • Okayama University   Faculty of Economics

    1996.4 - 2000.3

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    Country: Japan

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Research History

  • Yokohama City University   Association of International Arts and Sciences   Full Professor

    2025.4

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    Country:Japan

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  • Yokohama City University   Association of International Arts and Sciences   Associate Professor

    2016.4 - 2025.3

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    Country:Japan

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  • Tohoku University   Graduate School of Engineering   Adjunct Lecturer

    2014.4 - 2019.3

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    Country:Japan

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  • Central Research Institute of Electric Power Industry   Socio-economic Research Center   Research Economist

    2004.4 - 2016.3

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    Country:Japan

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Committee Memberships

  • New Frontiers in Regional Science: Asian Perspectives (Springer Nature)   Editorial Board  

    2022.1   

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    Committee type:Academic society

    https://www.springer.com/series/13039/editors

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  • Kanagawa Ward, Yokohama City   Designated Manager Selection Committee  

    2021.4 - 2022.3   

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    Committee type:Municipal

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  • Japan Society for the Promotion of Science   Reviewer of the Committee for the Selection of Candidates for Outstanding Research Fellowships  

    2020.7 - 2021.6   

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    Committee type:Academic society

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  • Japan Society for the Promotion of Science   Reviewer of the Special Fellowship Review Board  

    2020.7 - 2021.6   

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    Committee type:Academic society

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  • Japan Society for the Promotion of Science   Reviewer of the International Projects Committee  

    2020.7 - 2021.6   

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    Committee type:Academic society

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  • Asia-Pacific Journal of Regional Science (Springer Nature)   Associate Editor  

    2020.1   

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    Committee type:Academic society

    https://link.springer.com/journal/41685/editorial-board

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  • Ministry of Land, Infrastructure, Transport and Tourism   Member of the Committee for the Super-Mega-Region Economic Analysis WG  

    2017.9 - 2018.3   

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    Committee type:Government

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  • Izumi Ward, Yokohama City   Designated Manager Selection Committee  

    2017.4   

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    Committee type:Municipal

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  • Ministry of Land, Infrastructure, Transport and Tourism   Member of the Preparatory Committee for the Super-Mega-Region Economic Analysis WG  

    2017.3 - 2017.8   

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    Committee type:Government

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  • Ministry of Education, Culture, Sports, Science and Technology   Expert Investigator, Science and Technology Forecasting Center  

    2016.4   

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    Committee type:Government

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Papers

  • Effects of regional network economies on industrial productivity in Japan: dynamic total factor productivity function approach Reviewed International journal

    Akihiro Otsuka

    Asia-Pacific Journal of Regional Science   8 ( 4 )   1111 - 1134   2024.12

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    Authorship:Lead author, Corresponding author   Language:English   Publishing type:Research paper (scientific journal)   Publisher:Springer Science and Business Media LLC  

    Improving productivity performance is essential for achieving regional economic sustainability. With the advent of the network society, regional economic agents have benefited not only from local within-region interactions but also from external out-of-region economies. However, it remains unclear whether localized external economies or spillovers of externalities through inter-regional networks are more significant in improving productivity performance. Therefore, this study examined the relationships between productivity performance and geographical externalities from an industry perspective using regional economic data for Japan and employed a dynamic total factor productivity function approach. It also assessed the impact of high-quality transportation infrastructure improvements on productivity catch-up. The results revealed the long-run effects of inter-regional networks on the productivity performance of industries. Furthermore, it revealed that, as a geographical externality, the “borrowed size” effect contributed significantly to productivity improvements in both manufacturing and non-manufacturing industries. These findings suggest that enhancing both high-quality transportation infrastructure and inter-regional transportation networks is likely to improve industry productivity performance.

    DOI: 10.1007/s41685-024-00358-2

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    Other Link: https://rdcu.be/dZ97s

  • Lessons from regional electricity demand change following natural disasters in Japan Reviewed International journal

    Akihiro Otsuka

    Regional Science Policy & Practice   16 ( 4 )   12631   2024.4

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    Authorship:Lead author, Corresponding author   Language:English   Publishing type:Research paper (scientific journal)   Publisher:Elsevier B.V.  

    Analyzing the impact of electricity price changes on electricity demand helps in energy supply planning. This study estimated the electricity demand functions of households and industries, as well as the impact of electricity price hikes on electricity demand following natural disasters. We found that structural changes occurred in various regions’ electricity demand’s price elasticity following natural disasters. Furthermore, the results showed that the decrease in consumer surplus associated with higher electricity prices was more significant in regions that depended on nuclear power. These results have important implications for regional energy policies.

    DOI: 10.1111/rsp3.12631

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  • Impacts of enhancing regional network economies on regional productivity and productive efficiency in Japan: evaluation from stochastic frontier analysis Reviewed International journal

    Akihiro Otsuka

    Asia-Pacific Journal of Regional Science   8 ( 1 )   25 - 43   2024.3

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    Authorship:Lead author, Corresponding author   Language:English   Publishing type:Research paper (scientific journal)   Publisher:Springer Science and Business Media LLC  

    With the advancement of technology and advent of a networked society, economic agents within a region benefit from local interactions within the region as well as the external economies. However, strengthening extra-regional ties may have negative consequences for regions near the center if all their economic resources are absorbed by the core. It is unclear, for regional economic agents, whether the negative network externalities dominate the positive ones. This has not been fully elucidated in the previous studies. To contribute to a breakthrough for this research topic, this study identified the impacts of network externalities on improvements in productivity and productive efficiency using stochastic frontier analysis. The analysis revealed that the borrowed size effect of agglomeration in the manufacturing industry significantly raises total factor productivity through shifts in the production frontier. It also revealed that the shadow effect of agglomeration does not adversely affect the productive efficiency of industry in either the manufacturing or non-manufacturing sector. These results imply that enhancing quality transportation infrastructure and improving inter-regional transportation networks can enhance the production performance of regional industries.

    DOI: 10.1007/s41685-023-00321-7

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    Other Link: https://rdcu.be/drSQ7

  • Regional convergence of total factor productivity in Japanese industries: evidence from the twenty-first century industry data Reviewed International journal

    Akihiro Otsuka

    Asia-Pacific Journal of Regional Science   8 ( 1 )   165 - 184   2024.3

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    Authorship:Lead author, Corresponding author   Language:English   Publishing type:Research paper (scientific journal)   Publisher:Springer Science and Business Media LLC  

    Innovation and technological progress are crucial to the sustainability of regional economies. Assessing the role of the spatial dimension in the innovation process and evaluating the convergence of regional disparities in technological levels encompasses a vital research endeavor. The significance of this research effort lies in the fact that the convergence of economic disparities can be accelerated or impeded depending on the innovation process, that is, whether regional disparities in technological levels decrease or increase over time. This study provides new insights into regional disparities of total factor productivity (TFP) in Japan using a new method, the stochastic convergence model. The stochastic convergence model allows determination of the long-term stationarity in the convergence of disparities, which has been challenging in conventional analyses. In this study, we first evaluated the technological level of regional industries by measuring industry-specific TFP. Then, we verified the convergence of disparities in TFP among regions using a stochastic convergence model. The analysis results showed that TFP is rising with narrowing of regional disparities, particularly in the manufacturing sector. Furthermore, TFP converged to steady-state levels in each region, revealing the importance of the regional production environment in innovation. The results of this study provide important implications for developing strategies to enhance the sustainability of regional economies.

    DOI: 10.1007/s41685-023-00323-5

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    Other Link: https://rdcu.be/dtf1m

  • Price elasticity of electricity consumption in Japan, 1990 to 2015 Reviewed International journal

    Akihiro Otsuka

    SAGE Open   14 ( 1 )   2024.1

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    Authorship:Lead author, Corresponding author   Language:English   Publishing type:Research paper (scientific journal)   Publisher:SAGE Publications  

    This study examines regional price elasticities in electricity consumption to offer valuable insights for policymaking in electricity demand-side management in Japan. By employing a partial adjustment model and utilizing data from regional electric utilities, the study estimates regional electricity demand functions. The analysis reveals that, within the residential sector, the size of houses plays a significant role in explaining regional variations in price elasticity. Likewise, in the industrial sector, the presence or absence of private power generation facilities in firms significantly influences regional disparities in price elasticity. These findings hold substantial implications for enhancing the cost-effectiveness of electricity consumption regulations and policies.

    DOI: 10.1177/21582440241228654

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  • Regional data on electricity consumption and electricity prices in Japan Reviewed International journal

    Akihiro Otsuka

    Data in Brief   50   109467 - 109467   2023.10

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    Authorship:Lead author, Corresponding author   Language:English   Publishing type:Research paper (scientific journal)   Publisher:Elsevier B.V.  

    This dataset's data relate to Japan's electricity consumption from 1990 to 2015. It can be used by researchers, industry practitioners, and policymakers to analyze the impact of changes in electricity prices on the demand for electricity by region in the residential and industrial sectors. The dataset is divided into three categories: (i) regional sectoral electricity consumption data, (ii) regional sectoral electricity consumption intensity data, and (iii) regional sectoral electricity price data. Each category was obtained on an annual basis directly from various government databases. All data are aggregated by region.

    DOI: 10.1016/j.dib.2023.109467

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  • Industrial electricity consumption efficiency and energy policy in Japan Reviewed International journal

    Akihiro Otsuka

    Utilities Policy   81   101519 - 101519   2023.4

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    Authorship:Lead author, Corresponding author   Language:English   Publishing type:Research paper (scientific journal)   Publisher:Elsevier B.V.  

    This study analyzes the potential for energy savings by identifying inefficiencies in electricity use and their determinants in the Japanese industrial sector. Specifically, we used stochastic frontier analysis to estimate inefficiencies in electricity consumption based on data obtained from electric power companies. We identified significant determinants of electricity consumption efficiency and that changes in national energy policy following the Great East Japan Earthquake changed electricity consumption behavior. The contribution of this study is that its findings can be used to improve the cost-effectiveness of policies aimed at improving energy efficiency.

    DOI: 10.1016/j.jup.2023.101519

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  • Stochastic demand frontier analysis of residential electricity demands in Japan Reviewed International journal

    Akihiro Otsuka

    Asia-Pacific Journal of Regional Science   7 ( 1 )   179 - 195   2023.3

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    Authorship:Lead author, Corresponding author   Language:English   Publishing type:Research paper (scientific journal)   Publisher:Springer Science and Business Media LLC  

    This study analyzed the efficiency of residential electricity demands from 1990 to 2015 across the electrical supply regions of Japan. Specifically, I utilized a stochastic frontier analysis to statistically identify the determinants of the efficiency of residential electricity demands. The analysis revealed that a decline in average household size improves the efficiency of electricity demands, whereas a rise in the aging of household members worsens it. Furthermore, this study showed that the efficiency of electricity demands improves in warmer regions because of increased cost consciousness in cooling demands, whereas it deteriorates in colder regions because of the complementary use of various heating devices. A shift in Japan’s energy policy following the 2011 Great East Japan Earthquake has not significantly affected the efficiency of residential electricity demands. In other words, no structural changes have occurred in the efficiency of electricity demands during the observation period. As such, long-term trends within this sector in Japan include a decline in the average household size and a rise in population aging. Therefore, these findings provide important insights into Japan’s future trends in terms of energy demands.

    DOI: 10.1007/s41685-022-00267-2

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  • Assessment of the improvement in energy intensity by the new high-speed railway in Japan Reviewed International journal

    Akihiro Otsuka

    Asia-Pacific Journal of Regional Science   6 ( 1 )   267 - 282   2022.2

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    Authorship:Lead author, Corresponding author   Language:English   Publishing type:Research paper (scientific journal)   Publisher:Springer Science and Business Media LLC  

    Energy intensity improvement is an influential policy agenda for global environmental problem-solving and sustainability enhancement. This study focuses on inter-regional networks’ impact on energy intensity and statistically examines whether the improvement of such networks promotes a modal shift from passenger vehicles to railways. The results indicate the nonlinear relationship between the improvement of inter-regional networks and the variation of the passenger vehicle sector’s energy consumption. Furthermore, the results reveal that the laying of high-speed railways, which helps strengthen inter-regional networks, can significantly improve regional energy intensity. This result has valuable implications for Japan’s national land plan. The high-quality transportation infrastructure, such as high-speed railways, to be introduced in the country can potentially change the energy consumption patterns in inter-regional travel and improve energy intensity. Our results suggest that the installation of the high-speed railway will effectively reduce carbon dioxide emissions. This revelation is expected to provide new policy evidence to scholars and policymakers.

    DOI: 10.1007/s41685-020-00165-5

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  • Special Feature on Regional Sustainability: Analysis in a spatial and regional context with broad perspectives on the risk of global warming, natural disasters, and emerging issues due to the globalized economy Invited Reviewed International journal

    Yoshiro Higano, Akihiro Otsuka

    Asia-Pacific Journal of Regional Science   6 ( 1 )   239 - 245   2022.2

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    Language:English   Publishing type:Research paper (scientific journal)   Publisher:Springer Science and Business Media LLC  

    Articles included in the special feature section were explained in terms of Sustainable Development Goals (SDGs). It was shown that sustainability is conceptual and very flexible, while being too abstract for practice. This flexibility suggests a vast frontier for further research on Regional Sustainability in regional science fields. Various threats to humans were dealt with—global warming, natural disasters that could be intensified by global warming, the disappearance of marginal and minority communities, etc.

    DOI: 10.1007/s41685-022-00227-w

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  • Inter-regional Networks and Regional Disparities Reviewed International journal

    Akihiro Otsuka

    New Frontiers in Regional Science: Asian Perspectives   101 - 122   2021.9

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    Authorship:Lead author, Corresponding author   Language:English   Publishing type:Part of collection (book)   Publisher:Springer Singapore  

    This chapter analyzes the relationship between inter-regional network economies and regional disparities using stochastic frontier analysis. The current dynamics in Japan’s regional economic systems reveal a monocentric concentration in the Greater Tokyo Area. When the lock-in effect of agglomeration occurs, economic disparities between large metropolitan areas and local areas should expand. However, in Japan, regional disparities have not increased. Instead, economic performance in local areas has improved, and economic disparities between large metropolitan areas and local areas are narrowing. Therefore, Japan’s situation requires an explanation that goes beyond conventional agglomeration theory. This chapter shows that inter-regional networks enhance the effectiveness of borrowed size and repair the lost links between regional economic systems and agglomeration theory. The chapter reveals that the borrowed size effect has significantly improved production efficiency in local areas in Japan. The impact of the borrowed size effect is greater than the agglomeration benefit derived from the local size. The results also show that the development of high-quality transportation networks has enabled local areas to catch up to large metropolitan areas and reduce regional disparities. This suggests that the establishment of high-quality inter-regional networks is a significant policy measure to help reduce regional disparities in Japan’s economy.

    DOI: 10.1007/978-981-16-3709-4_6

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  • Executive Summary Reviewed International journal

    Akihiro Otsuka

    New Frontiers in Regional Science: Asian Perspectives   1 - 14   2021.9

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    Authorship:Lead author, Corresponding author   Language:English   Publishing type:Part of collection (book)   Publisher:Springer Singapore  

    This chapter provides an overview of the contents of this book. This book discusses the impacts of inter-regional networks on the regional economy through economic analyses. This book also has many implications for the national land policy in Japan. Japan’s national land plan aims to achieve enormous economic benefits through the upgrading of inter-regional networks. Connecting regions via high-speed transportation networks may help to improve regional productivity and environmental efficiency. However, to the best of our knowledge, few studies have assessed the significance of the national land plan because of the low availability of relevant data and the scarcity of analytical methods for accurately measuring inter-regional network economies. Therefore, this book provides analytical methods that can clarify the role of inter-regional networks in improving productivity and environmental efficiency. Based on plentiful empirical evidence, this book defines the role of inter-regional networks in the regional economy. Notably, the book provides indicators that capture the economic effects of inter-regional networks. Using these indicators reveals that such networks enhance geographical externalities in regions and improve productivity and environmental efficiency. These findings provide readers with guidelines regarding desirable regional economic policies for economies facing population decline.

    DOI: 10.1007/978-981-16-3709-4_1

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  • Inter-regional Networks and Productivity Dynamics Reviewed International journal

    Akihiro Otsuka

    New Frontiers in Regional Science: Asian Perspectives   83 - 100   2021.9

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    Authorship:Lead author, Corresponding author   Language:English   Publishing type:Part of collection (book)   Publisher:Springer Singapore  

    For the society of population decline, improving productivity is crucial for achieving regional sustainability. This chapter presents the concept of inter-regional network economies as a new paradigm for agglomeration economies and clarifies the effect of high-speed transportation networks on total factor productivity (TFP) by using Japan’s regional data. The results show that inter-regional networks contribute more to TFP growth in many regions than regional agglomeration does. The development of high-quality transportation networks has promoted the inter-regional flow of economic agents. By increasing opportunities for interaction, these inter-regional flows increase knowledge spillovers between regions. That is, connecting cities through high-quality transportation networks and strengthening their connections with each other will lead to significant spillover from agglomeration economies, previously restricted to cities, to other regions. The results of this chapter confirm that high-quality transportation networks spread the economic benefits of agglomeration across a broader area through the effect of borrowed size. It can be concluded that measures for the development of high-quality transportation networks are essential for regional sustainability in the sense of expanding geographical externalities.

    DOI: 10.1007/978-981-16-3709-4_5

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  • Regional Productivity and Determinants Reviewed International journal

    Akihiro Otsuka

    New Frontiers in Regional Science: Asian Perspectives   65 - 79   2021.9

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    Authorship:Lead author, Corresponding author   Language:English   Publishing type:Part of collection (book)   Publisher:Springer Singapore  

    This chapter considers the determinants of Japan’s regional TFP. An increase in TFP can be achieved through two paths: The first is a shift in the production frontier, which amounts to an increase in output for a given input volume (productivity effect). The second is an approach to the production frontier by ensuring that outputs are closer to the production frontier levels for a given input volume (productive efficiency effect). The elements of external economies, such as social overhead capital (SOC) and regional agglomeration, affect both. From these two paths, this chapter clarifies the roles played by SOC and regional agglomeration in increasing regional sustainability by using the stochastic frontier model of the TFP index. The empirical analysis using Japan’s regional data provides the following evidence. First, SOC investment contributes to TFP growth and, more importantly, has a productivity effect and productive efficiency effect, mainly in local areas. Second, regional agglomeration underpins the TFP growth in large metropolitan areas. Third, the productive efficiency effect is high in regions specializing in internationally competitive manufacturing industries. It is concluded that providing high-quality public infrastructure and enhancing regional productivity are essential strategies for the government to consider in its efforts to achieve sustainable regional growth.

    DOI: 10.1007/978-981-16-3709-4_4

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  • Regional Productivity and Convergence Reviewed International journal

    Akihiro Otsuka

    New Frontiers in Regional Science: Asian Perspectives   49 - 64   2021.9

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    Authorship:Lead author, Corresponding author   Language:English   Publishing type:Part of collection (book)   Publisher:Springer Singapore  

    This chapter measures the total factor productivity (TFP) in Japan’s regions and clarifies whether a convergence of TFP disparities has been observed since 1980. Japan’s regional economies face global competition amid the challenges of a declining and aging population. Given these economic conditions, the Japanese government has sought to boost TFP to enhance sustainability in regional economies. This chapter measures TFP using Japanese regional data. Most of Japan’s studies measure TFP at the national level; few studies attempt TFP analysis in a regional context. Therefore, this chapter contributes to TFP research in the context of regional economies. Furthermore, this chapter introduces a stochastic convergence model to verify the regional convergence. In Japan’s study, cross-sectional studies show regional convergence, while some time-series studies do not show convergence. Therefore, another objective of this chapter is to provide additional evidence to supplement the discussions of previous studies. The results of this chapter reveal that Japan’s TFP has not only continually increased over the study period but has also reduced regional disparities. Furthermore, the results show that TFP converged to each region’s steady-state level rather than the national level. These results suggest the significance of regional production environments and provide policy implications for regional economies.

    DOI: 10.1007/978-981-16-3709-4_3

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  • Regional Economic Structure in Japan Reviewed International journal

    Akihiro Otsuka

    New Frontiers in Regional Science: Asian Perspectives   17 - 48   2021.9

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    Authorship:Lead author, Corresponding author   Language:English   Publishing type:Part of collection (book)   Publisher:Springer Singapore  

    This chapter provides an overview of the regional economic structure. Japan continues to experience migration and a spatial concentration of economic activities in the Greater Tokyo Area. The theory on agglomeration economies explains that this population inflow enhances the Greater Tokyo Area’s increasing returns to scale. In other words, as population inflow in the Greater Tokyo Area increases its economies of scale, the gaps in the economic performance between the Greater Tokyo Area and local areas are expected to widen, and the regional disparities in gross value added (GVA) per capita should expand. However, regional disparities in GVA per capita have been shrinking rather than expanding since the 1990s. Conventional theories do not explain this phenomenon well. This chapter provides evidence of economic growth in local areas and the potential for economic advance. Notably, this chapter reveals that social overhead capital, industrial structure, and fiscal transfer have enhanced the economic power of local areas and helped reduce regional disparities. Japan’s experiences provide valuable insights into regional development policies aimed at achieving compatibility between economic growth and equitability.

    DOI: 10.1007/978-981-16-3709-4_2

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  • Solow Residual Approach to Inter-regional Network Economies Reviewed International journal

    Akihiro Otsuka

    New Frontiers in Regional Science: Asian Perspectives   123 - 140   2021.9

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    Authorship:Lead author, Corresponding author   Language:English   Publishing type:Part of collection (book)   Publisher:Springer Singapore  

    This chapter reevaluates inter-regional network economies in Japan based on cost-based Solow residuals, a novel analytical approach. In most studies, inter-regional network economies have been measured as elements of technological progress in production functions. However, the conventional approach based on perfect competition raises concerns that measurements of geographical externalities depend on the behavior of economic agents. One way to mitigate this concern is to construct a model based on imperfect competition. The cost-share Solow residual approach provides reliable evidence of the geographical externalities uncovered by the conventional approach. That is, by applying this approach to geographical analysis, we can precisely identify inter-regional network economies under imperfect economies. Furthermore, by using this approach, we perform a sensitivity analysis on the installation of the Linear-Chuo Shinkansen (magnetic levitation train) to measure the economic impact of high-quality transportation infrastructure. The results show that the Linear-Chuo Shinkansen provides a significant time-saving effect not only in the region of origin but also in local regions other than those along the railway lines. That is, the results reveal that the formation of inter-regional networks can increase productivity not only in large metropolitan areas but also in local areas. The results of this chapter suggest that inter-regional networks via high-quality transportation infrastructure significantly enhance regional economic performance. This chapter provides empirical evidence for the national land plan in Japan.

    DOI: 10.1007/978-981-16-3709-4_7

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  • Inter-regional Network Formation and Modal Shift Potential Reviewed International journal

    Akihiro Otsuka

    New Frontiers in Regional Science: Asian Perspectives   195 - 209   2021.9

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    Authorship:Lead author, Corresponding author   Language:English   Publishing type:Part of collection (book)   Publisher:Springer Singapore  

    Energy conservation is a crucial policy agenda for solving global environmental problems and enhancing sustainability. This chapter quantifies the possibility of decreasing energy consumption in the passenger vehicle sector by improving inter-regional networks and provides a way to realize sustainable development goals (SDGs). The efficient design of high-speed transportation networks enables economic agents to avoid using private vehicles, which saves transportation energy. The results reveal a nonlinear relationship between improvements in inter-regional networks and reduced energy consumption in the passenger vehicle sector. There is an inverse U-shaped relationship between the two. That is, a modal shift from passenger vehicles to railways occurs if the improvement in the regional network reaches a threshold value. Furthermore, this chapter clarifies the changes in energy consumption patterns due to the installation of the Linear-Chuo Shinkansen, a high-speed magnetic levitation train. The Linear-Chuo Shinkansen has the potential to improve both firm productivity and energy efficiency because firms facing environmental constraints can invest in energy conservation by increasing their profits. Notably, the Linear-Chuo Shinkansen can drive a modal shift from passenger vehicles to railways, thereby improving the energy efficiency of the regions. Through a sensitivity analysis, this chapter shows that the Linear-Chuo Shinkansen installation has the potential to switch the mode of inter-regional travel from passenger vehicles to railways. These results suggest that the installation of the new high-speed railway leads to a reduction in greenhouse gas emissions and is a trump card to achieve SDGs.

    DOI: 10.1007/978-981-16-3709-4_10

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  • Regional Sustainability and Energy Efficiency Reviewed International journal

    Akihiro Otsuka

    New Frontiers in Regional Science: Asian Perspectives   175 - 194   2021.9

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    Authorship:Lead author, Corresponding author   Language:English   Publishing type:Part of collection (book)   Publisher:Springer Singapore  

    Energy intensity has not been deemed a suitable index of energy efficiency because it depends on various socioeconomic factors, such as energy prices and production size. Therefore, this chapter identifies desirable energy efficiency indices that overcome the concerns of energy intensity using the stochastic frontier analysis (SFA) approach. The SFA approach controls for prices and income, mechanization, vintage, and climate factors to derive accurate energy efficiency levels. By using this approach, this chapter clarifies the energy efficiency level for Japan’s industrial and commercial sectors and evaluates the impact of regional agglomeration and inter-regional networks on energy efficiency. The results reveal that improved inter-regional networks have a positive impact on energy efficiency. Regions with well-developed transportation networks are highly energy efficient. This result suggests that policies aimed at strengthening inter-regional networks can significantly contribute to improving energy efficiency in Japan. Meanwhile, the results reveal that regional agglomeration has mixed effects on energy efficiency. That is, there are positive and negative impacts on energy efficiency. Initially, agglomeration economies inherently have a mixture of advantages and disadvantages, such as spatial externalities, congestion, and heat islands. By considering the nonlinear effects, this chapter identified that there is a threshold in the agglomeration effects, and both a positive and negative effect of agglomeration are at play. This result suggests that agglomeration sizes beyond the threshold level are necessary to enjoy agglomeration benefits.

    DOI: 10.1007/978-981-16-3709-4_9

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  • Regional Sustainability and Energy Intensity Reviewed International journal

    Akihiro Otsuka

    New Frontiers in Regional Science: Asian Perspectives   143 - 174   2021.9

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    Authorship:Lead author, Corresponding author   Language:English   Publishing type:Part of collection (book)   Publisher:Springer Singapore  

    Controlling greenhouse gas emissions by improving energy intensity and boosting regional economic growth are essential policy goals for realizing regional sustainability. Given the potential conflicts between these goals, this chapter examines whether regional agglomeration, which is considered a driving force for productivity improvement, contributes to improved energy intensity. Originally, regional agglomeration was considered to enhance productivity and competitiveness via knowledge spillover. Spillover effects, wherein advances in one firm’s efficiency spread rapidly to other firms, lower the overall cost threshold for improvements in energy efficiency. In other words, the regional agglomeration has the potential to improve energy efficiency. The results of this chapter demonstrate the significant effect of regional agglomeration on energy intensity. Notably, it was confirmed that regional agglomeration affects not only regional disparities in energy intensity but also temporal dynamic changes. This finding suggests that differences in regional agglomeration affect energy demand patterns via energy intensity. Furthermore, this chapter clarifies the regional disparities in the agglomeration effect on energy intensity. The local area specialized in the manufacturing industry has a more significant potential to improve energy intensity than the large metropolitan area. These results highlight the importance of regional agglomeration as a primary factor in energy intensity and suggest that regional agglomeration should be encouraged in regions to improve energy intensity, which could protect the environment while fostering economic growth.

    DOI: 10.1007/978-981-16-3709-4_8

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  • A new approach to inter-regional network externalities in Japan Reviewed International journal

    Akihiro Otsuka

    Regional Science Policy & Practice   13 ( 3 )   1051 - 1067   2021.6

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    This study evaluates the regional agglomeration and the inter‐regional network economies in Japan based on cost‐based Solow residuals, overcoming the issues associated with the conventional analytical approaches. Furthermore, this study performs a simulation analysis of the economic impacts of the Linear Chuo Shinkansen (magnetic levitation train) to investigate the role of high‐quality transportation infrastructure in regional sustainability. The results reveal that the improvement of inter‐regional networks increases regional productivity. Furthermore, the results reveal that the economic benefits of inter‐regional networks extend beyond railroad lines. These results suggest that inter‐regional networks via high‐quality transportation infrastructure enhance regional economic performance.

    DOI: 10.1111/rsp3.12291

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  • Determinants of energy demand efficiency: Evidence from Japan’s industrial sector Invited Reviewed International journal

    Akihiro Otsuka

    Energy Policy   2020.7

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    With the growing demand for energy, improving energy efficiency has become a key policy issue in Japan. Therefore, this study estimates the energy demand function of Japan’s industrial sector using a stochastic frontier model and analyzes the level of energy efficiency and its determinants. An empirical analysis based on the data of 47 Japanese prefectures presents three main findings. First, installment in large production facilities deteriorates energy efficiency and second, it is effective in increasing the electrification rate to improve energy efficiency. Finally, improving productivity leads to an increase in the electrification rate. These results suggest that policies aimed at increasing electrification by enhancing the productivity of factories and offices significantly contribute to improving energy efficiency.

    DOI: 10.5772/intechopen.81482

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  • Energy intensity and population density in Japan Reviewed International journal

    Akihiro Otsuka

    Environmental Economics and Computable General Equilibrium Analysis   233 - 252   2020.7

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    In the Japanese economy, complying with environmental regulations while achieving a balance between greenhouse gas emissions and regional economic growth is an important policy issue. From the perspective of national land policy, spatial agglomeration of populations is a potential solution to this issue. This study clarifies whether population agglomeration, which is a source of economic growth, contributes to the improvement of energy intensity in the residential and industrial sectors by using a dynamic panel model. The use of this model enables a simultaneous understanding of the short- and long-term effects of population agglomeration on energy intensity. The results of the analysis reveal that population agglomeration influences improvements in energy intensity. Specifically, over the observation period, population agglomeration improved energy intensity in large metropolitan areas, including the Greater Tokyo area and the Chubu and Kansai regions. In contrast, for less urbanized areas, population dispersion exacerbated energy intensity. These results suggest that forming population agglomerations will lead to improvement in energy efficiency. That is, they suggest that a compact city policy that agglomerates populations in city centers may be effective in improving energy efficiency across Japan.

    DOI: 10.1007/978-981-15-3970-1_11

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  • An assessment of regional energy efficiency in Japan's industrial sector Invited

    Akihiro Otsuka

    The Bulletin of Yokohama City University   71 ( 2 )   81 - 101   2020.2

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    DOI: 10.15015/00001779

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  • Inter-regional networks and productive efficiency in Japan Reviewed International journal

    Akihiro Otsuka

    Papers in Regional Science   99 ( 1 )   115 - 133   2020.2

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    Traditional agglomeration theories cannot explain Japan's sustained reduction of regional disparities. This study employs stochastic frontier analysis to investigate the role of inter‐regional networks in improving productive efficiency using the concept of “borrowed size.” Improved inter‐regional networks are a driving force for strengthening local economies and converging regional disparities. Borrowed size from large city agglomeration was highly effective in local areas. The development of transportation networks has enabled local areas to catch up to large metropolitan areas. The results suggest that the development of high‐speed transportation networks can help to reduce regional disparities in the Japanese economy.

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  • Natural disasters and electricity consumption behavior: a case study of the 2011 Great East Japan Earthquake Reviewed International journal

    Akihiro Otsuka

    Asia-Pacific Journal of Regional Science   3 ( 3 )   887 - 910   2019.7

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    A better understanding of the price mechanisms behind electricity demand fluctuations could help develop effective tools to forecast energy demand after natural disasters. To this end, this study empirically analyzed the price elasticity of residential electricity demand in Japan over the 1990–2015 period using regional data. In particular, it attempted to shed light on the price mechanisms behind demand fluctuations by analyzing the effects of both price increases and decreases on power demand. The results showed that households tend to consume electricity according to past patterns. Given this electricity consumption behavior, once the habit of saving electricity is established, it persists. The results also show that changes in the power supply configuration associated with natural disasters may alter people’s electricity consumption behaviors. Consumer responses seem to be more sensitive to price rises than to price falls. This suggests the possibility that residential electricity demand will further decrease if the trend of rising electricity rates continues in the future.

    DOI: 10.1007/s41685-019-00129-4

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  • How do population agglomeration and interregional networks improve energy efficiency? Reviewed International journal

    Akihiro Otsuka

    Asia-Pacific Journal of Regional Science   4 ( 1 )   1 - 25   2019.7

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    This study investigates the impact of population agglomeration and interregional networks on the energy efficiency of the Japanese industrial and commercial sector. The empirical analysis employs a stochastic frontier model and reveals a nonlinear relation between population agglomeration and energy efficiency. External diseconomies prevail until reaching a threshold level of agglomeration; when the threshold is exceeded, external economies come into play. Enhanced accessibility is found to significantly increase energy efficiency. These results suggest that policies aimed at strengthening regional agglomeration and interregional networks can greatly contribute to improving energy efficiency.

    DOI: 10.1007/s41685-019-00126-7

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  • Productivity change and decomposition analysis of Japanese regional economies Reviewed International journal

    Mika Goto, Amani Mohammed Atris, Akihiro Otsuka

    Regional Studies   52 ( 11 )   1537 - 1547   2018.11

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    This study examines the productivity growth and its four components for Japanese regional economies by analyzing 47 prefectures for the period 1995–2012. The productivity changes are measured by the Hicks–Moorsteen–Bjurek productivity growth, and the four components consist of technical change, efficiency change, scale change, and input and output mix effects. Data envelopment analysis (DEA) is applied to the measurement. From the results, this study provides two policy recommendations for Japan’s new economic growth strategy, which are associated with (1) government support for the diffusion of advanced technology over regions and (2) the creation and development of unique innovation by regional industries.

    DOI: 10.1080/00343404.2017.1413238

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  • Dynamics of agglomeration, accessibility, and total factor productivity: evidence from Japanese regions Reviewed International journal

    Akihiro Otsuka

    Economics of Innovation and New Technology   27 ( 7 )   611 - 627   2018.9

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    With Japan’s declining population, improving productivity is important to achieving continuous regional economic growth. This study focuses on the regional effects of population agglomeration and accessibility on total factor productivity (TFP). Empirical analysis shows that population agglomeration contributed to TFP growth, most significantly in the Greater Tokyo area. The interaction (flow) of people was examined and the importance of high-speed transportation network for TFP growth was clarified as the effect of accessibility on TFP growth. Population agglomeration and the development of transportation network are thus important strategies for growing regional economies.

    DOI: 10.1080/10438599.2017.1384110

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  • Regional determinants of energy efficiency: residential energy demand in Japan Reviewed International journal

    Akihiro Otsuka

    Energies   11 ( 6 )   1 - 14   2018.6

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    Controlling the rapid growth of residential energy demand and enhancing energy efficiency are key policy issues in Japan. Thus, this study aims to estimate a residential energy demand function by conducting a stochastic frontier analysis and analyze the regional determinants of energy efficiency. The results indicate that population density and electrification rate foster energy efficiency and exert the same degree of impact. The study also highlights that population concentration has a nonlinear effect on energy efficiency. In other words, when combined with population concentration, the promotion of electrification policies can significantly contribute toward improving energy efficiency in the residential sector and consequently, have a positive effect on Japan’s regional economy.

    DOI: 10.3390/en11061557

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  • Population agglomeration and residential energy consumption: evidence from Japan Reviewed International journal

    Akihiro Otsuka

    Sustainability   10 ( 2 )   1 - 12   2018.2

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    In the Japanese economy facing environmental restrictions, both the control of greenhouse gas emissions and the boost of regional economic growth are important policy issues. In this context, this study employs econometric methods to investigate whether population agglomeration, which is a potential source of economic growth, contributes to the reduction of energy consumption in the residential sector. The results of the analysis highlight that population agglomeration affects savings in energy consumption. Specifically, over the considered observation period, population agglomeration has saved energy consumption in large metropolitan areas. In contrast, in rural areas, population dispersion has had the opposite effect.

    DOI: 10.3390/su10020469

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  • An economic analysis of electricity demand: evidence from Japan Invited Reviewed International journal

    Akihiro Otsuka

    Advances in Energy Research   28   147 - 174   2017.11

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    This chapter aims to describe an up-to-date approach of analyzing the electricity demand and to estimate electricity demand functions in Japan’s industrial, commercial, and residential sectors. This chapter employs the dynamic GMM estimation approach and empirically analyzes regional electricity demand by using panel data on 47 Japanese prefectures. The results reveal that the price elasticity of residential electricity demand is high compared with income elasticity, implying that residential electricity demand changes with rates. On the other hand, the results also reveal that in industrial and commercial sectors, the price elasticity of demand is extremely low in the short and long run and production elasticity is greater than price elasticity. Thus, price elasticity is a key determinant in residential electricity demand fluctuations but not a determinant in industrial and commercial electricity demand fluctuations. Furthermore, an analysis of factors influencing electricity demand shows that increasing residential electricity demand growth in each region can be attributable mainly to declining electricity rates and increasing the number of households. The analysis also suggests that the declining industrial electricity demand growth in large metropolitan areas is mainly attributable to declining production factors, not increasing electricity rates. By contrast, the commercial sector is experiencing an increasing demand for electricity and significant growth nationwide, which can be attributed to an increase in commercial floor space and advances in office automation. These results suggest that monitoring the electricity rates is important for forecasting future residential electricity demand at region.

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  • Determinants of efficiency in residential electricity demand: stochastic frontier analysis on Japan Reviewed International journal

    Akihiro Otsuka

    Energy, Sustainability and Society   7 ( 1 )   31   2017.10

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    Background
    Rapidly increasing residential electricity demand has made raising energy efficiency an important policy issue in controlling electricity demand.

    Methods
    This study uses a stochastic frontier model to estimate the residential electricity demand function and analyse electricity energy efficiency levels and their determinants using regional data on Japan.

    Results
    The results confirm the importance of household dwelling types for determining the electricity energy efficiency. Specifically, the findings suggest that household size and floor area are key to electricity savings, but the ageing Japanese society shows a limited relationship with electricity savings. Further, promoting living in areas where the population has aggregated also results in electricity savings.

    Conclusions
    The findings suggest that forming urbanised cities and realising multi-polarisation-type national spatial developments might improve electricity energy efficiency and stimulate regional economies.

    DOI: 10.1186/s13705-017-0135-y

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  • Market Access, Agglomeration Economies, and Productive Efficiency (II) Reviewed International journal

    Akihiro Otsuka

    New Frontiers in Regional Science: Asian Perspectives   161 - 182   2017.9

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    This chapter examines the impacts of agglomeration economies and fiscal transfer on productive efficiency in Japanese regional industries. Two popular methodologies, stochastic frontier analysis and data envelopment analysis, are applied to measure productive efficiency. The empirical findings are summarized as follows: (1) Agglomeration economies improve productive efficiency. (2) Fiscal transfer negatively influences productive efficiency. (3) Those two findings are observed for aggregated manufacturing and non-manufacturing industries, and for sectors in manufacturing industries. (4) The importance of agglomeration economies for regional industries has increased in recent years. Based on these results, this chapter discusses effective regional policy for Japan.

    DOI: 10.1007/978-981-10-6490-6_9

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  • Introduction and Summary Reviewed International journal

    Akihiro Otsuka

    New Frontiers in Regional Science: Asian Perspectives   1 - 12   2017.9

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    This chapter describes the research background three objectives of this book. The first objective is to clarify from multiple perspectives how industrial agglomeration influenced the growth of the regional economy in Japan during the 1980s and 1990s, when globalization of economic activity and the hollowing-out of industries were in progress. The second is to shed light on the industrial agglomeration effects from a dynamic perspective by looking at industrial development. The third objective is to propose a new analytical approach using the techniques of productive efficiency analysis. This book is comprised of ten chapters. A summary of each chapter is described in this chapter.

    DOI: 10.1007/978-981-10-6490-6_1

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  • Dynamic Externalities: Theory and Empirical Analysis Reviewed International journal

    Akihiro Otsuka

    New Frontiers in Regional Science: Asian Perspectives   69 - 95   2017.9

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    This chapter focuses on dynamic externalities that are a source of competitive advantages, and reviews the related empirical studies. Research on technical-knowledge spillover, the core of dynamic externalities, is being widely conducted, mainly in the field of industrial organization theory. However, there are few empirical studies that have considered technical-knowledge spillover from the viewpoint of industrial agglomeration. Some studies estimate the extent and type of dynamic externalities, and find evidence consistent with dynamic externalities. Despite the different data sources used, methodologies are similar. This chapter reviews the main methodologies of dynamic externalities, and discusses empirical analysis issues of previous studies.

    DOI: 10.1007/978-981-10-6490-6_5

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  • A New Approach to Agglomeration Economies Reviewed International journal

    Akihiro Otsuka

    New Frontiers in Regional Science: Asian Perspectives   53 - 68   2017.9

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    This chapter proposes a new approach to measure agglomeration economies in Japan. Specifically, this study employs the Solow residual to confirm whether agglomeration economies exist in both manufacturing and non-manufacturing industries. This study also shows that social overhead capital has a positive effect on agglomeration economies. Currently, such economies are robust only in large metropolitan areas; however, they are present throughout Japan because of the disproportionate allocation of social overhead capital within the country.

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  • A Traditional Approach to Agglomeration Economies Reviewed International journal

    Akihiro Otsuka

    New Frontiers in Regional Science: Asian Perspectives   33 - 52   2017.9

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    This chapter sheds empirical light on the relationship between agglomeration economies and regional economic growth and the impact of that relationship on the convergence of regional disparities in productivity, using a traditional approach to agglomeration economies. Based on Japanese prefectural data, an empirical analysis indicates that agglomeration economies have significant effects on regional economic growth. Furthermore, agglomeration economies contribute to economic convergence in the manufacturing industry, while they contribute to increasing disparities across regions in the non-manufacturing industry. These results suggest that an increase in the proportion of non-manufacturing industries has the potential to create regional disparities.

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  • Empirical Knowledge of Agglomeration Economies Reviewed International journal

    Akihiro Otsuka

    New Frontiers in Regional Science: Asian Perspectives   13 - 31   2017.9

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    This chapter details the role of industrial agglomeration in regional economies, and discusses the issues found in existing empirical studies. The role industrial agglomeration plays in regional economies has been discussed and empirically studied for a long time. Agglomerations include several related industries, and an abundance of specialized workers. Therefore, it is possible for firms to achieve high productivity through input sharing, labor market pooling, and knowledge spillovers. Such effects can generally be found in two cases: The first case is where an agglomeration of similar industries results in an increase in productivity. The second case is where an agglomeration of different industries results in an increase in productivity. Traditionally, these effects have been measured by external economies of scale, but an analytical approach has recently been proposed that uses spatial density to seek the source of external economies. This chapter reviews these research trends.

    DOI: 10.1007/978-981-10-6490-6_2

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  • Market Access, Agglomeration Economies, and Productive Efficiency (I) Reviewed International journal

    Akihiro Otsuka

    New Frontiers in Regional Science: Asian Perspectives   137 - 160   2017.9

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    This chapter examines whether agglomeration economies, market access, and public fiscal transfer have a positive or negative influence on the productive efficiency of Japanese regional industries. To accomplish the research objective, this chapter applies stochastic frontier analysis to a prefecture level Japanese data set that consists of estimated spatial and industrial economic activities. An empirical result obtained in this chapter indicates that both agglomeration economies and the improvement of market access have a positive influence on the productive efficiency of Japanese manufacturing and non-manufacturing industries. In contrast, public fiscal transfer has a negative impact on productive efficiency. These findings indicate that many prefectures that are characterized by weak market access and/or high dependence on public fiscal transfer are often associated with low productive efficiency.

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  • A New Approach to Dynamic Externalities (II) Reviewed International journal

    Akihiro Otsuka

    New Frontiers in Regional Science: Asian Perspectives   117 - 135   2017.9

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    This chapter examines the effects of industrial agglomeration on productivity growth in emerging industries. The analysis employs four-digit data of Japanese manufacturing industries, and shows that (1) ceramic, stone, and clay products, general machinery, and precision instruments and machinery enjoy the advantage generated by proximity to other industries; (2) new manufacturing technology sectors, such as industrial robots, tend to receive agglomeration effects, although information technology sectors do not; and (3) most emerging industries do not profit from economies of scale. These findings reveal that emerging industries benefit from agglomeration effects and face market competition.

    DOI: 10.1007/978-981-10-6490-6_7

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  • A New Approach to Dynamic Externalities (I) Reviewed International journal

    Akihiro Otsuka

    New Frontiers in Regional Science: Asian Perspectives   97 - 116   2017.9

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    This chapter investigates how dynamic externalities promote industrial growth in Japanese manufacturing industries. In contrast to previous studies, this study characterizes dynamic externalities by total factor productivity. Using panel data of Japanese prefectures from 1985 through 2000, this study finds evidence of localization (MAR) externalities and urbanization (Jacobs) externalities. However, this study does not find clear evidence that dynamic externalities play the role of centripetal forces for industrial location.

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  • Market Access, Agglomeration Economies, and New Firm Formation Reviewed International journal

    Akihiro Otsuka

    New Frontiers in Regional Science: Asian Perspectives   183 - 196   2017.9

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    This chapter analyzes the determinants of regional variations in new firm formation by industry, using the data of 47 prefectures in Japan. The results of this study reveal the following findings: (1) market access is the factor that promotes new firm formation in all industries, although the impact on new firm formation is greater in the service industry than in the manufacturing industry; (2) industrial agglomeration contributes to stimulating new firm formation in the manufacturing industry; and (3) while average wage is an important factor in the manufacturing industry, it is not significant in the service industry.

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  • Regional determinants of energy intensity in Japan: the impact of population density Reviewed International journal

    Akihiro Otsuka, Mika Goto

    Asia-Pacific Journal of Regional Science   2 ( 2 )   257 - 278   2017.7

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    The Japanese economy must contend with environmental restrictions; hence, both controlling greenhouse gas emissions by improving energy intensity and boosting national and regional economic growth are important policy goals. Given the potential conflicts between these goals, this study investigates the current energy consumption levels in the Japanese regional economy to determine the factors contributing to improvements in energy intensity. We conduct an empirical analysis using econometric methods to examine whether population density, which is considered a driving force of productivity improvements, contributes to improved energy intensity. The analysis results reveal that population density influences energy intensity improvements. However, the impact differs across regions. In large metropolitan areas, population agglomeration has improved energy intensity, whereas in rural areas, population dispersion has worsened it. The policy implication from this study is that population agglomeration should be encouraged in each region to improve energy intensity, which could protect the environment along with future economic growth.

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  • Regional determinants of total factor productivity in Japan: stochastic frontier analysis Reviewed International journal

    Akihiro Otsuka

    The Annals of Regional Science   58 ( 3 )   579 - 596   2017.2

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    As Japan’s birthrate declines and its society ages, governmental policies need to improve the productivity of regional economies in order to sustain regional growth. This study examines social overhead capital and population agglomeration as drivers of total factor productivity (TFP) growth in Japan. The use of stochastic frontier analysis demonstrates that social overhead capital contributes to TFP growth and, especially, influences productive efficiency. Furthermore, the findings reveal that population agglomeration underpins TFP growth in regional economies. Empirical results also indicate that productive efficiency is high in regions where manufacturing is concentrated and that productive efficiency improves when internationally competitive manufacturers concentrate in regional economies. This study endorses the development of social overhead capital to spur Japan’s regional TFP growth. As such, it indicates that providing social infrastructure and enhancing regional productivity are important strategies for the government to consider in its efforts to achieve sustainable regional growth.

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  • Determinants of residential electricity demand: evidence from Japan Reviewed International journal

    Akihiro Otsuka, Shoji Haruna

    International Journal of Energy Sector Management   10 ( 4 )   546 - 560   2016.11

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    Purpose: This paper aims to estimate electricity demand functions in Japan’s residential sector. Design/methodology/approach: The authors use a partial adjustment model and empirically analyze regional residential electricity demand by using data on 47 Japanese prefectures. Findings: The results reveal that the price elasticity of residential electricity demand during the analytical period (1990-2010) is remarkably different among prefectures, depending on the magnitude of floor space per household. In addition, this study finds that price elasticity is high compared with income elasticity, implying that residential electricity demand changes with rates. Furthermore, an analysis of factors influencing electricity demand in the residential sector shows that increasing electricity demand growth in each region can be attributable mainly to declining electricity rates and increasing number of households. Research limitations/implications: These results suggest that monitoring the electricity rates and the number of households is important for forecasting future residential electricity demand at region. Originality/value: The study considers the impact of the number of households on overall electricity demand and identifies other factors contributing to growth in residential electricity demand. The findings can be used to derive projections for future electricity demand.

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  • Determinants of Regional Energy Demand: Dynamic Shift-Share Analysis Invited Reviewed International journal

    Akihiro Otsuka

    SpringerBriefs in Energy   23 - 40   2016.10

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    In order to investigate the future trends of energy demand in Japan accurately, there is a need to clarify the factors that cause fluctuations in energy demand across regions; more specifically, to determine whether the energy demand fluctuations across regions arise from compositional factors, that is, differences in energy users, or from regionally unique factors. This study analyzes the determinants of energy demand change to clarify the factors that have affected the fluctuations in regional energy demands in Japan, using dynamic shift-share analysis. The results show that the energy demand fluctuations can be explained by both compositional effects and regional effects. With regard to the compositional effects, the energy demand growth increased most remarkably in the regions that specialize in residential and commercial sectors. However, energy demand did not increase in the regions that specialize in manufacturing sectors. With respect to the regional effects, there were constraints on energy demand in large metropolitan areas due to the improved energy intensity achieved through energy conservation. The results imply that having a mixture of industry and ResCom (Residential and Commercial) sectors in a region potentially flattens out fluctuations in energy demand changes. This finding suggests that when moderating changes in regional energy demand, an important step is to diversify the industrial structure in each region.

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  • Regional Energy Demand in Japan Invited Reviewed International journal

    Akihiro Otsuka

    SpringerBriefs in Energy   1 - 22   2016.10

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    In this study, the Energy Consumption Statistics by Prefecture were utilized and the actual conditions of energy demand in the regions of Japan were ascertained. The results revealed that Japan’s national energy demand increased from the 1990s to the 2000s; and that the driving forces behind this expansion were the Residential and Commercial (ResCom) and Transportation sectors. In regional trends, the findings showed that the increase in energy demand in large metropolitan areas not only contributed greatly to the national increase, but also that energy demand in rural areas grew steadily. Upon considering the changes to regional energy demand by analyzing changes to energy demand per capita and population changes, the study found that energy demand per capita has a major impact on regional energy demand, and that in particular, the increase in energy demand in rural regions has been brought about by the increase in energy demand per capita.

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  • Residential Energy Demand and Energy Efficiency Invited Reviewed International journal

    Akihiro Otsuka

    SpringerBriefs in Energy   83 - 98   2016.10

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    Based on the rapid increase in residential energy demand, the question of how to raise energy efficiency in the residential sector, while controlling overall demand, is an important policy issue for Japan. In this study, the stochastic frontier model is used to estimate the energy demand function in the residential sector and to analyze the energy efficiency levels and their factors. From the results of the empirical analysis based on regional data in Japan, the following three points were clarified. First, the energy efficiency levels calculated using the stochastic frontier model were highly correlated with the energy intensity levels and are effective as an index expressing energy efficiency. Second, raising the regions’ electrification rates is an effective way of improving energy efficiency in the residential sector. Third, increasing the regions’ population densities is also an effective way of improving energy efficiency in the residential sector. These findings suggest that not only will implementing policies to advance electrification contribute greatly to improving environmental efficiency in the residential sector, but also that realizing decentralized, multi-polar national spatial developments may improve environmental efficiency and stimulate regional economies.

    DOI: 10.1007/978-3-319-47566-0_5

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  • Determinants of Energy Efficiency: Stochastic Frontier Analysis Invited Reviewed International journal

    Akihiro Otsuka

    SpringerBriefs in Energy   65 - 81   2016.10

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    In response to increased environmental constraints, it has become an important policy issue for Japan to improve energy efficiency for the future, along with the growth of regional economies. This study uses a stochastic frontier model to estimate the energy demand function and analyze the levels and determinants of energy efficiency. The empirical analysis, conducted by using data from 47 prefectures in Japan, revealed the following four findings. First, the proposed energy efficiency measure (calculated using the stochastic frontier model) is found valid, as its ranking is highly correlated with that of energy intensity. Second, increasing population density is effective in improving energy efficiency. Third, improving regional accessibility by developing a highway network helps to improve energy efficiency in Japan. Fourth, the level of energy efficiency is deteriorating in areas where raw material industries are clustered. These results indicate that the means to increasing both economic productivity and environmental efficiency are to implement a regional decentralization policy by creating major urban areas across the nation and expand a wide-area transportation network to link these areas. In addition, the promotion of technological innovations through appropriate environmental regulations is important to advance such regional policies.

    DOI: 10.1007/978-3-319-47566-0_4

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  • Energy Efficiency and Productivity Invited Reviewed International journal

    Akihiro Otsuka

    SpringerBriefs in Energy   41 - 63   2016.10

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    Along with various environmental concerns, Japan has an important policy issue arising from the development of its economy, which is how simultaneously to attain regional economic growth and energy efficiency. This study examined the impacts of agglomeration economies on energy efficiency of Japanese manufacturing industries. Using a prefecture-level panel data set from the Energy Consumption Statistics by Prefecture, this study reveals the following three empirical findings. First, productivity growth has improved energy efficiency, but not vice versa. Second, agglomeration economies, which are a driving force for productivity growth, have improved the energy efficiency of Japanese manufacturing industries. Finally, by agglomerating similar industries, localization economies are effective in improving energy efficiency in rural areas. The third finding is consistent with many previous studies claiming that agglomeration economies based on localization occur for many medium-sized cities. The result implies that an important policy direction for Japan will be to formulate medium-sized cities in rural areas than large metropolitan cities in terms of improving the energy efficiency of manufacturing industries.

    DOI: 10.1007/978-3-319-47566-0_3

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  • Regional energy demand in Japan: dynamic shift-share analysis Reviewed International journal

    Akihiro Otsuka

    Energy, Sustainability and Society   6 ( 1 )   2016.4

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    Background
    To investigate the future trends of energy demand in Japan accurately, it is necessary to clarify the factors that determine the fluctuations in energy demands across regions. Specifically, it is necessary to clarify whether the energy demand fluctuations across regions arise from compositional factors, that is, differences in energy users, or from regionally unique factors.

    Methods
    This study analyzes the determinants of energy demand change to clarify the factors that have affected the fluctuations in regional energy demands in Japan, using dynamic shift-share analysis.

    Results
    The results show that the energy demand fluctuations can be explained by compositional effects and regional effects. With regard to the compositional effects, the energy demand growth increased most remarkably in the regions that specialize in residential and commercial activities. However, energy demand did not increase in the regions that specialize in manufacturing activities. With respect to the regional effects, there were constraints on energy demand in big-city regions because of the improved energy intensity achieved through energy conservation.

    Conclusions
    The results imply that having a mixture of industry and civil sector activities in a region potentially flattens out the fluctuations in energy demand changes. This finding suggests that when moderating the change of regional energy demand, it is important to diversify the industrial structure in each region.

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  • The empirical analysis of energy efficiency in Japanese manufacturing industries : the impact of industrial agglomeration on energy efficiency Invited

    Akihiro Otsuka

    Okayama Economic Review   47 ( 3 )   575 - 597   2016.3

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    In a Japanese economy that must contend with environmental restrictions, both the control of greenhouse gas emissions by improving energy efficiency and the boosting of national and regional economic growth are important issues of policy. To this end, this study targeted the industrial sectors of 47 prefectures and investigated the current energy consumption levels for the manufacturing industry in order to analyze the factors contributing to improvements in energy efficiency in the manufacturing industry, which is responsible for most of the industrial energy consumed. An empirical analysis was conducted using econometric methods to determine whether an improvement in energy efficiency is compatible with an improvement in productivity and/or whether industrial agglomeration, in which productivity improvement is the driving force, contributes to an improvement in energy efficiency.
    The results of the analysis are as follows. (1) There is a clear correlation between productivity and energy efficiency. A deeper analysis of this correlation reveals that while productivity improvement influences energy efficiency, an improvement in energy efficiency does not influence productivity improvement. (2) Industrial agglomeration influences improvements in energy efficiency. Industrial agglomeration has improved energy efficiency from the formation of industry agglomeration in rural regions. In contract, in the Tokyo metropolitan area and Kansai region, the decline in industrial agglomeration has worsened energy efficiency. This result suggests that in order to improve our manufacturing energy efficiency, it is necessary to agglomerate the same type of industries in rural regions.

    DOI: 10.18926/OER/54167

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  • Total factor productivity and the convergence of disparities in Japanese regions Reviewed International journal

    Akihiro Otsuka, Mika Goto

    The Annals of Regional Science   56 ( 2 )   419 - 432   2016.1

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    Japan’s regional economies face global competition amidst the challenges of a declining and aging population. Given such economic conditions, Japan’s total factor productivity (TFP) requires boosting to achieve competitiveness in regional economies. Although labor productivity is a popular measure for the analysis of productivity and has been a focus of prior studies, TFP’s comprehensiveness is a preferable measure. This study measures TFP using regional data from Japan and tests if the convergence of regional TFP disparities can be detected since 1980. The results show that TFP has continually increased and converged to reduce regional disparities over the study period. We perform statistical analysis of the regional convergence in TFP using a stochastic convergence model and find that TFP converged at each region’s stationary level, not at the nationwide unique level. These results provide policy implications for Japan’s regional economies.

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  • The impact of agglomeration economies on energy efficiency in Japan Reviewed International journal

    Akihiro Otsuka, Mika Goto

    The Asian Conference on Sustainability, Energy & the Environment Conference Proceedings 2015   2015.11

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    With environmental constraints being strengthened worldwide, an important question that arises for Japan’s economic policy is how best to achieve regional economic growth along with energy efficiency. This study examines the impacts of agglomeration economies, which boost economic growth, on the energy efficiency of Japanese manufacturing industries. Using a prefectural-level panel dataset from the Energy Consumption Statistics by Prefecture, this study obtains new empirical results: (1) agglomeration economies improve the energy efficiency of Japanese manufacturing industries; (2) localization economies positively impact the improvement of energy efficiency in rural areas, while urbanization economies positively impact the improvement of energy efficiency in large metropolitan areas. Thus, it is determined that agglomerating similar industries is effective in improving energy efficiency in rural areas; however, in large metropolitan areas, it is more effective to agglomerate diverse industries in order to improve energy efficiency. In general, industrial agglomeration as a result of economies of agglomeration, based on localization, occurs for the most part in medium-sized cities. The finding therefore suggests that it is more appropriate to formulate strategy in terms of medium-sized cities than large metropolitan cities in improving the energy efficiency of manufacturing industries located in rural areas.

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  • Regional disparity of productivity and the factors in Japanese industries Reviewed International coauthorship International journal

    Mika Goto, Akihiro Otsuka, Toshiyuki Sueyoshi

    The Asian Conference on Sustainability, Energy & the Environment Conference Proceedings 2015   2015.11

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    This study examines productivity change and the factors of regional industries in Japan using a data set consisting of 47 prefectures over the period from 1990 to 2009. The data set is comprised of one output and five inputs for manufacturing and non-manufacturing industries; amount of real term production as an output and intermediate input, number of employees, private capital stock, social capital stock and final energy consumption as inputs. Using the data set, we measure Hicks-Moorsteen-Bjurek (HMB) productivity index proposed by Nemoto and Goto (2005). The advantage of the HMB productivity index compared with the other popular productivity indexes such as Törnqvist productivity index and Malmquist productivity index is that the former can be fully decomposed into factors to explain the productivity change over time. To calculate the HMB productivity index, this study measures the distance functions by applying a data envelopment analysis (DEA). From the results, this study indicates regional disparity has gradually expanded among regions, particularly after 2003. We show the increased disparity can be attributed to the reduced level of social capital investment for rural areas since 2000’s. Finally this study discusses desirable regional policy in Japan.

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  • Demand for industrial and commercial electricity: evidence from Japan Reviewed International journal

    Akihiro Otsuka

    Journal of Economic Structures   4 ( 1 )   1 - 11   2015.7

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    This study aims to estimate electricity demand functions in Japan’s industrial and commercial sectors. We adopt data from the Energy Consumption Statistics by Prefecture by the Ministry of Economy, Trade and Industry, Japan, to delineate the demand between the industrial and commercial sector. The results reveal that in both sectors, the price elasticity of demand is extremely low in the short and long run and production elasticity is greater than price elasticity. Thus, price elasticity is not a key determinant in electricity demand fluctuations. Furthermore, an analysis of the factors influencing changes in electricity demand in the industrial sector suggests that the declining demand growth in large metropolitan areas is mainly attributable to declining production factors, not increasing electricity rates. By contrast, the commercial sector is experiencing an increasing demand for electricity and significant growth nationwide, which can be attributed to an increase in commercial floor space and advances in office automation.

    DOI: 10.1186/s40008-015-0021-8

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  • Estimation and determinants of energy efficiency in Japanese regional economies Reviewed International journal

    Akihiro Otsuka, Mika Goto

    Regional Science Policy & Practice   7 ( 2 )   89 - 101   2015.6

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    In response to increased environmental constraints, it has become an important policy issue for Japan to improve energy efficiency for the future, along with the growth of regional economies. This paper uses a stochastic frontier model to estimate the energy demand function and analyse the levels and determinants of energy efficiency. The empirical analysis conducted by using data from 47 prefectures in Japan revealed the following four findings. First, the proposed energy efficiency measure (calculated using the stochastic frontier model) is found to be effective, as its ranking is highly correlated with that of energy intensity. Second, increasing population density is effective in improving energy efficiency. Third, improving regional accessibility by developing a highway network helps to improve the energy efficiency in Japan. Fourth, the level of energy efficiency is deteriorating in areas where raw material industries are clustered. These results indicate that the means to increasing both economic productivity and environmental efficiency are to implement a regional decentralization policy by creating major urban areas across the nation and expand a wide-area transportation network to link these areas. In addition, the promotion of technological innovations through appropriate environmental regulations is important to advance such regional policies.

    DOI: 10.1111/rsp3.12058

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  • Regional policy and the productive efficiency of Japanese industries Reviewed International journal

    Akihiro Otsuka, Mika Goto

    Regional Studies   49 ( 4 )   518 - 531   2015.4

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    This paper examines the impacts of agglomeration economies and fiscal transfer on productive efficiency in Japanese regional industries. Two popular methodologies are applied - stochastic frontier analysis (SFA) and data envelopment analysis (DEA) - to measure productive efficiency. The empirical findings are summarized as follows: (1) agglomeration economies improve productive efficiency; (2) fiscal transfer negatively influences productive efficiency; (3) those two findings are observed for aggregated manufacturing and non-manufacturing industries, and for sectors in manufacturing industries; and (4) the importance of agglomeration economies for regional industries has increased in recent years. Based on these results, this paper discusses effective regional policy for Japan.

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  • Agglomeration economies in Japanese industries: the Solow residual approach Reviewed International journal

    Akihiro Otsuka, Mika Goto

    The Annals of Regional Science   54 ( 2 )   401 - 416   2015.2

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    This paper proposes a new approach to measuring agglomeration economies in Japan. Under the proposed approach, we used the Solow residual to measure agglomeration economies and confirmed that agglomeration economies exist in both manufacturing and non-manufacturing industries. Furthermore, this paper shows that social overhead capital has a positive effect on agglomeration economies. Currently, agglomeration economies are robust only in metropolitan areas; however, they are present throughout Japan because of the disproportionate allocation of social overhead capital within the nation.

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  • Cost-efficiency of Japanese local governments: effects of decentralization and regional integration Reviewed International coauthorship International journal

    Akihiro Otsuka, Mika Goto, Toshiyuki Sueyoshi

    Regional Studies, Regional Science   1 ( 1 )   207 - 220   2014.10

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    Stochastic frontier analysis is used to examine the cost-efficiency of Japanese local governments at a prefectural level, corresponding to states in the United States. The issue of cost-efficiency has two policy concerns for fiscal decentralization: one is whether fiscal transfers from central government to local governments influence cost-efficiency; the other is whether the size of the local population influences cost-efficiency. This study empirically confirms that the fiscal transfers have a negative effect. In contrast, population size has a positive effect. The two findings may suggest that Japanese local governments can improve their cost-efficiencies by both reducing the amount of fiscal transfers via decentralization and increasing a population growth via regional integration.

    DOI: 10.1080/21681376.2014.953196

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  • Energy efficiency and agglomeration economies: the case of Japanese manufacturing industries Reviewed International coauthorship International journal

    Akihiro Otsuka, Mika Goto, Toshiyuki Sueyoshi

    Regional Science Policy & Practice   6 ( 2 )   195 - 212   2014.6

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    Along with various environmental concerns, Japan has an important policy issue arising from the development of its economies. The issue is how to simultaneously attain regional economic growth and energy efficiency. This study has examined impacts of agglomeration economies on energy efficiency of Japanese manufacturing industries. Using a prefecture‐level panel data set from Energy Consumption Statistics, this study identifies the following three empirical findings. First, the productivity growth has improved energy efficiency, but not vice versa. Second, agglomeration economies, which are a driving force for productivity growth, have improved the energy efficiency of Japanese manufacturing industries. Finally, localization economies by agglomerating similar industries are effective in improving the energy efficiency in rural areas. The third finding is consistent with many previous studies, claiming that agglomeration economies based on localization occur for many medium‐sized cities. The result implies that it is an important policy direction for Japan to formulate medium‐sized cities in rural areas than large metropolitan cities in terms of improving the energy efficiency of manufacturing industries.

    DOI: 10.1111/rsp3.12039

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  • Estimations of regional electric demand function : a factor analysis of price elasticity Reviewed

    Akihiro Otsuka

    Planning and Public Management   37 ( 2 )   53 - 59   2014.5

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    This study derivates the empirical models of residential and power demand and attempts to measure the price elasticity of residential and power demand among nine power companies. As the general consensus among researchers analyzing electric demand is that electric power demand is extremely inelastic; the price elasticity of electric demand is a priori assumed to be as low as zero or –0.1. The results of the empirical analysis reveal that the values for the price elasticity of residential demand in each region are distributed between –0.14 and –0.64; therefore, it is clear that price elasticity significantly varies from zero in all regions. Further, since the price elasticity values of power demand are between –0.16 and –0.55, it is apparent that these values also significantly vary from zero in all regions. Regional disparities for residential demand were also found. Moreover, we can confirm that a feature of regional power demand is that price elasticity is smaller in urban areas and larger in rural areas. It is understood that power demand is related to the ratio of self-owned power plants.

    DOI: 10.14985/jappm.37.2_53

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  • Long-term demographic forecasting for the Chugoku region until 2050 : An estimation considering the characteristics of inter-regional migration Reviewed

    Kazuyoshi Nakano, Akihiro Otsuka

    The Bulletin of the Center for Research on Regional Economic Systems, the Graduate School of Social Science, Hiroshima University   25 ( 25 )   77 - 89   2014.3

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    This paper develops a population forecasting model for the Chugoku region in Japan, highlighting the consistent structure of interregional migration, and the effects of economic disparity between regions. By considering the changes in out-migration rate by age, the results show that population aging causes a reduction in interregional migration, which leads to natural demographic change dominating. Moreover, it is predicted that elderly people will rapidly increase by 24% in Hiroshima prefecture due to the aging of post-war baby boomers that had inflow during the rapid growth period, and so again natural demographic change will become increasingly significant. The forecasts of other institutions, which assume that the net migration rate during 2005-2010 will remain constant in the future, are more pessimistic than the results found in this paper. Lastly, the change in the fertility rate may affect the prefectural population in the Chugoku region in 2050 by around 10%.

    DOI: 10.15027/36160

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  • DEA (Data Envelopment Analysis) assessment of operational and environmental efficiencies on Japanese regional industries Reviewed International coauthorship International journal

    Mika Goto, Akihiro Otsuka, Toshiyuki Sueyoshi

    Energy   66   535 - 549   2014.3

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    A balance between industrial pollution and economic growth becomes a major policy issue to attain a sustainable society in the world. To discuss the problem from economics and business perspectives, this study proposes a new use of DEA (Data Envelopment Analysis) as a methodology for unified (operational and environmental) assessment. A unique feature of the proposed approach is that it separates outputs into desirable and undesirable categories. Such separation is important because energy industries usually produce both desirable and undesirable outputs. This study discusses how to unify the two types of outputs under natural and managerial disposability. The proposed DEA approach evaluates various organizations by the three efficiency measures such as OE (Operational Efficiency), UEN (Unified Efficiency under Natural disposability) and UENM (Unified Efficiency under Natural and Managerial disposability). An important feature of UENM is that it separates inputs into two categories and unifies them under the two disposability concepts in addition to the proposed output separation and unification. This study incorporates an amount of capital assets for technology innovation, as one of the two input group, into the measurement of UENM. Then, it compares UENM with the other two efficiency measures. This study is the first research effort in which DEA has an analytical capability to quantify the importance of investment on capital assets for technology innovation. To confirm the practicality of the proposed approach, this study applies the three efficiency measures to a data set regarding manufacturing and non-manufacturing industries of 47 prefectures in Japan. This study empirically confirms the validity of Porter hypothesis in Japanese manufacturing industries, so implying that environmental regulation has been effective for betterment on the performance of Japanese manufacturing industries. Another important finding is that the emission of greenhouse gases is a main source of unified inefficiency in the two groups of industries. Therefore, Japanese industries, examined in this study, need to make their efforts to reduce the greenhouse gas emissions and air pollution substances by investing in capital assets for technology innovation. (C) 2013 Elsevier Ltd. All rights reserved.

    DOI: 10.1016/j.energy.2013.12.020

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  • Analysis of Productive Efficiency in Japanese Regional Economies: Reviewed

    Akihiro Otsuka

    Studies in Regional Science   44 ( 4 )   453 - 465   2014

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    In this study, we conducted an empirical analysis of the impacts of social overhead capital, population agglomeration and industry structure on productive efficiency, focusing on Japan’s 47 prefectures. The analysis results showed that upgrading social overhead capital contributes to improved regional productive efficiency. At the same time, the economic effect of population agglomeration was clearly shown to increase productive efficiency. Moreover, regions that are heavily weighted toward manufacturing were shown to have high productive efficiency. After investigating the degree to which each factor contributes to productivity gains in each region, it became clear that the largest contributor was industry structure. In other words, the transformation of industry structure appears to be indispensable for the sustainable development of regional economies. At the same time, upgrading social overhead capital was shown to contribute to some degree to such sustainable development. Meanwhile, high population agglomeration appeared to have a powerful economic effect in major metropolitan areas, such as Tokyo Metropolitan Area and Kansai. Due to its significant external effect, population agglomeration is predicted to realize economies of scale in Tokyo and Osaka. This study demonstrated that upgrading social overhead capital has an effect on increasing productive efficiency, in addition to previously understood effects on productivity. Upgrading regional social overhead capital drives sustainable growth in regional economies through increases in productivity. Future studies should address regional analysis at a more detailed level, such as at the level of municipalities.

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  • An empirical analysis of foreign direct investment by focusing on firm-specific advantages using survey data Reviewed

    Akihiro Otsuka, Koichiro Morikawa

    KOKUSAI KEIZAI   64   103 - 123   2013.11

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    This study quantifies the factors contributing to foreign direct investment (FDI) using data from a questionnaire-based survey of Japanese manufacturing firms with overseas operations. The results of our analysis echoed that of previous research, demonstrating that in addition to company size, the effects of R and marketing capabilities on FDI were statistically significant. Notably, R capability exerted a stronger effect than marketing capability, which led us to conclude that technical knowledge is an important firm-specific advantage among firms embarking on FDI.

    DOI: 10.5652/kokusaikeizai.kk2013.04.ak

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  • Assessment of productive and environmental efficiencies of Japanese industries Reviewed International coauthorship International journal

    Mika Goto, Akihiro Otsuka, Toshiyuki Sueyoshi

    The Asian Conference on Sustainability, Energy & the Environment Conference Proceedings 2013   586 - 599   2013.8

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    The global warming and climate change becomes a major policy issue in the world. To partly deal with the climate change issue from economics and business concerns, this study proposes a use of Data Envelopment Analysis (DEA) as a methodology for unified (operational and environmental) assessments. The proposed DEA approach has been long serving as an important methodology to evaluate the performance of various organizations. Recently, many researchers have applied DEA to various environmental issues. A contribution of the previous DEA studies was that they found the importance of an output separation into desirable (good) outputs and undesirable (bad) outputs (e.g., CO2 emission and air pollution substances from production activities). Acknowledging a contribution of these previous studies on DEA environmental assessment, this study classifies efficiency measures into the two categories according to the treatment of undesirable outputs: (a) productive efficiency and (b) unified efficiency under natural disposability. The first efficiency does not incorporate undesirable outputs in the performance evaluation, while the second measure incorporates them to the environmental assessment. Using a data set regarding the manufacturing industries of 47 prefectures in Japan, this study examines their productive and environmental efficiencies to obtain policy implications. The important empirical finding suggests that Japanese regional industries need to make their further efforts to reduce air pollution substances and increase energy efficiency.

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  • Industrial agglomeration effects in regional economy: A case of Chugoku region Reviewed

    Akihiro Otsuka, Takashi Morioka, Makoto Kurose

    The Bulletin of the Center for Research on Regional Economic Systems, the Graduate School of Social Science, Hiroshima University   22 ( 22 )   23 - 39   2011.3

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    The role that industrial agglomerations play in regional economic growth has been discussed in the fields of regional economics and urban economics, and the effect of industrial agglomeration on regional economy has been proven in a number of previous studies. In particular, almost all previous works of research attempted to explain the reasons behind industrial agglomeration and classify its effects. Industrial agglomeration effects are conceptually classified into localization and urbanization economies. Localization economies are those agglomeration effects that accrue to a group of firms that belong to the same industrial sector and are located at the same place. Urbanization economies are agglomeration effects that accrue to firms across various sectors. Previous research focused on understanding the effect of these industrial agglomerations by using regional data of various countries. Moreover, the existence of localization economies and urbanization economies has been established in many regions including Japan. However, this focus was narrowed down to grasping the impact of industrial agglomeration on the level of labor productivity; most of the previous research did not verify the extent to which industrial agglomeration had exerted influence on regional economic growth. Therefore, this study extends these previous studies on agglomeration economies, by using the Japanese prefecture-level data on industries. We estimate the impact of industrial agglomeration on economic growth in Japanese regions. By employing Japanese prefectural data for the period 1980-2005, we attempt to provide, on the basis of an estimated production function, sufficient clarification of the manner in which agglomeration accelerates economic growth in regions.

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  • Industrial agglomeration effects in Japan: productive efficiency, market access, and public fiscal transfer Reviewed International coauthorship International journal

    Akihiro Otsuka, Mika Goto, Toshiyuki Sueyoshi

    Papers in Regional Science   89 ( 4 )   819 - 840   2010.11

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    This study examines whether agglomeration economies, market access and public fiscal transfer have a positive or negative influence on the productive efficiency of Japanese regional industries. To attain the research objective, stochastic frontier analysis is applied to a Japanese data set at a prefecture level which consists of estimated spatial and industrial economic activities from 1980 to 2002. An empirical result obtained in this study indicates that both the agglomeration economies and the improvement of market access have a positive influence on the productive efficiency of Japanese manufacturing and non-manufacturing industries. In contrast, the public fiscal transfer has a negative impact on the productive efficiency. These findings indicate that many prefectures (corresponding to States in the United States), which are characterized by weak market access and/or high dependence on public fiscal transfer, are often associated with their low productive efficiency.

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  • Industrial agglomeration effects on economic convergence Reviewed International journal

    Akihiro Otsuka

    The Empirical Economics Letters   8 ( 9 )   878 - 888   2009.9

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    This paper sheds empirical light on the relationship between industrial agglomeration economies and the convergence of the regional disparities in productivity. An empirical analysis, based on Japanese prefectural data for the period 1980–2002, shows that industrial agglomeration has significant effects on labor productivity. Furthermore, industrial agglomeration contributes to economic convergence in the manufacturing industry, while it contributes to increasing disparities across regions in the non-manufacturing industry. These results suggest that an increase in the share of non-manufacturing sectors has the potential to create such regional disparities.

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  • Determinants of new firm formation in Japan: a comparison of the manufacturing and service sectors Reviewed International journal

    Akihiro Otsuka

    Economics Bulletin   18 ( 5 )   1 - 7   2008.12

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    Authorship:Lead author, Corresponding author   Language:English   Publishing type:Research paper (scientific journal)   Publisher:AccessEcon LLC  

    This paper analyzes the determinants of regional variations in new firm formation by industry, using the data of 47 prefectures in Japan. The results of this paper reveal the following evidences: (1) market access is the factor that promotes new firm formation in all industries, though the impact on new firm formation is greater in the service sectors than in the manufacturing sectors; (2) the industrial agglomeration contributes to stimulating new firm formation in the manufacturing sectors; and (3) while average wage is an important factor in the manufacturing sectors, it is not significant in the service sectors.

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  • Industrial agglomeration and economic convergence: the case of Japanese regions Reviewed

    Akihiro Otsuka

    The Economic Analysis   ( 180 )   1 - 19   2008.3

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    Authorship:Lead author, Corresponding author   Language:Japanese   Publishing type:Research paper (scientific journal)   Publisher:Economic and Social Research Institute, Cabinet Office  

    In the 1990s, Japanese regions experienced serious economic recession. During this period, the Japanese government began to introduce new policies that promoted industrial agglomeration in regions. These industrial agglomerations are termed as clusters, and they are expected to act as a major force to drive the regional productivity growth. According to the traditional urban and regional economic theory, agglomeration economies are the external economies that accrue to a group of firms belonging to the same sector located at the same place. Agglomeration economies are also the external economies that accrue to firms across the various sectors. It is well known that these externalities positively impact the productivity of firms. However, it is not clear whether agglomeration economies affect economic convergence.
    This paper examines the impact of industrial agglomeration on regional economic growth and explores whether the formation of industrial agglomeration contributes to the convergence of regional disparities in productivity. The result, obtained using Japanese prefectural data for the period 1980–2002, indicates that spillover effects have greater effects on regional growth than economies of scale. Furthermore, scale economies contribute toward economic convergence in the manufacturing industry. In contrast, with regard to the non-manufacturing industry, scale economies contribute toward increasing the regional disparities in productivity. Therefore, the expansion of the non-manufacturing sectors in the industrial structure can potentially create regional economic disparities.

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    Other Link: https://warp.da.ndl.go.jp/info:ndljp/pid/11513838/www.esri.go.jp/jp/archive/bun/bun180/bun180a.pdf

  • Building of regional econometric input-output model in Chugoku region: Economic outlook for the year 2030 Reviewed

    Takashi Morioka, Akihiro Otsuka

    The Bulletin of the Center for Research on Regional Economic Systems, the Graduate School of Social Science, Hiroshima University   19 ( 19 )   37 - 58   2008.3

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    Authorship:Last author, Corresponding author   Language:Japanese   Publishing type:Research paper (bulletin of university, research institution)   Publisher:Center for Research on Regional Economic Systems, Hiroshima University  

    In recently years, dramatic changes in economic and social environment, such as aging population, globalization of economic activities, and so on, have increased uncertainty about the future of local areas in Japan, including Chugoku region. As a result, it has become more important than ever for each region to have its own vision for the future of the economy and society. This paper presents a newly developed "regional econometric input-output model for Chugoku region (CREIM)" that can produce a long-term outlook for the Chugoku region's macro-economy and industries. Unlike conventional models, this model enables analysts to make forecasts of detailed structural changes in the inter-industry relations in the Chugoku region's economy, along with ordinary macro-economic projections, with input-coefficients changing endogenously every year during the projection period. Using the model, we carried out a forecast for the period 2002–2030.The results reveal that the projected average annual growth rate of real GDP in Chugoku region is 0.93% during 2002–2030. While private final consumption expenditure and housing investment will be getting depressed, external demand-led growth is expected in Chugoku region, especially in the leading industries such as chemical products, petroleum and coal products, iron and steel, general machinery, electrical machinery and transportation equipment, due to the continuous expansion in world trade.

    DOI: 10.15027/28827

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  • The efficiency of fiscal expenditure by regional integration Reviewed

    Akihiro Otsuka

    Government Auditing Review   36 ( 36 )   139 - 154   2007.9

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    Authorship:Lead author, Corresponding author   Language:Japanese   Publishing type:Research paper (scientific journal)   Publisher:Board of Audit of Japan  

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    Other Link: https://www.jbaudit.go.jp/koryu/study/mag/pdf/j36d10.pdf

  • Determinants of regional variation in new firm formation in Japan : A comparative analysis of manufacturing sectors and service sectors Reviewed

    Makoto Kurose, Akihiro Otsuka

    The Bulletin of the Center for Research on Regional Economic Systems, the Graduate School of Social Science, Hiroshima University   18 ( 18 )   19 - 33   2007.3

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    The importance of new firm formation has long been discussed in the literature of traditional regional science and urban economics. The results of numerical empirical studies show that the new firms create jobs, stimulate technological progress, and contribute to regional economic growth. Therefore, the new firm formation is an important policy issue for each region. Though the empirical studies demonstrate the determinants of spatial variations in new firm formation, almost all literatures neglect the difference of the determinants across industries. We analyze the determinants of regional variation in new firm formation by industry using the 47 prefectural data in Japan. The results of our analysis show the following evidences; 1) gross regional expenditures (GRE) is the factor promoting the new firm formation in all industries, but impact of GRE greater in service sectors than in manufacturing sectors; 2) the average wage is the important factor in manufacturing sectors, while the factor is not significant in service sectors; 3) the industrial agglomeration contributes to stimulate the new firm formation in service sectors.

    DOI: 10.15027/28820

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  • Agglomeration Economies in New Growth Sectors of Japanese Manufacturing Industry Reviewed

    Otsuka Akihiro

    The Economic Review   57 ( 3 )   224 - 235   2006.7

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    Authorship:Lead author, Corresponding author   Language:Japanese   Publishing type:Research paper (bulletin of university, research institution)   Publisher:Iwanami Shoten, Publishers  

    This paper examines the effects of industrial agglomeration on productivity growth in new growth sectors. Our analysis employing 4-digit data of Japanese manufacturing industries shows that 1) ceramic, stone and clay products, general machinery, precision instruments and machinery, enjoy the advantage generated by the close location to the other industries, 2) new manufacturing technology sectors, such as industrial robots, tend to receive agglomeration effects, although information technology sectors do not, 3) most new growth sectors gain profit from economies of scale at a very local level. These findings reveal that the new growth sectors benefit from agglomeration effects and face market competition.

    DOI: 10.15057/21888

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    Other Link: https://hdl.handle.net/10086/20288

  • Dynamic externalities of industrial agglomeration : a survey Invited

    Akihiro Otsuka

    Okayama Economic Review   35 ( 4 )   27 - 50   2004.3

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    Authorship:Lead author, Corresponding author   Language:Japanese   Publishing type:Research paper (bulletin of university, research institution)   Publisher:The Economic Association of Okayama University  

    This paper reviews existing literature on dynamic externalities which is the fountainhead of competitive advantages, and argues that rigorous theoretical and empirical analysis is needed to increase understanding of the role of technological spillovers in generating regional growth. Empirical analysis of knowledge spillovers is broadly performed in the field of industrial organization. Recently, a number of empirical analyses aiming at verifying technological spillovers accompanying R&Dactivity of companies have been conducted. In recent empirical literature on spatial agglomeration, many papers find evidence consistent with dynamic externalities. Especially, growing bodies of research have estimated the extent and type of dynamic externalities. Despite the different data sources used, methodologies are similar. As the survey of some methodologies has been carried out by McDonald (1997), this paper reviews the mainempirical analyses of dynamic externalities as the complement−positioning.

    DOI: 10.18926/OER/40591

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    Other Link: http://id.ndl.go.jp/bib/6882200

  • Dynamic externalities in Japanese manufacturing industries Reviewed

    Akihiro Otsuka

    Journal of Applied Regional Science   8 ( 1 )   55 - 66   2003.6

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    Authorship:Lead author, Corresponding author   Language:Japanese   Publishing type:Research paper (scientific journal)   Publisher:The Applied Regional Science Conference  

    We investigate the way dynamic production externalities promote industrial growth in Japanese manufacturing industries. In contrast to previous studies, we characterize dynamic externalities by total factor productivity. Using panel data for Japanese prefectures from 1985 thorough 2000, we find evidence of localization (MAR) externalities and urbanization (Jacobs) externalities. However, we do not find clear evidence that dynamic externalities play the role of centripetal forces for industrial location.

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Books

  • A New Driver of Regional Sustainability in Japan : Inter-regional Network Economies Reviewed

    Akihiro Otsuka( Role: Sole author)

    Springer Nature  2021.9  ( ISBN:9789811637087

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    Total pages:xii, 209 p.   Language:English   Book type:Scholarly book

    This book highlights the roles of inter-regional networks in regional economies to explore the drivers of sustained regional economic growth. Many industrialized countries are currently undergoing a period of population decline. To enhance sustainability in the regional economy, it is necessary to increase productivity and improve energy efficiency. This book provides new approaches to describing the economic effects of inter-regional networks, which are key to enhancing regional economic growth, using productivity analysis. In addition, it also furnishes considerable evidence on the formation of high-speed transportation infrastructure. Traditional studies on agglomeration economies have focused on external economies that occur in spatially limited areas and have not considered agglomeration economies from a broader perspective, i.e., from the perspective of inter-regional networks. In particular, recent studies have identified that the actual spatial range that would benefit from agglomeration economies is broader than that covered by conventional studies. This volume explains the phenomenon using Alonso’s concept of borrowed size. This is the first book to show the impact of inter-regional networks on Japan’s regional economy using the concept of the borrowed-size effect. Based on empirical evidence, the roles of inter-regional networks are determined in the context of the regional economy that faces population decline and environmental constraints. A deeper consideration of the analytical methods and understanding the results of detailed analyses will make it possible to propose desirable regional economic policies in the face of population decline. This book thus provides valuable insights into the regional economic development of Japan, which is particularly pertinent to other countries with similar land structures.

    DOI: 10.1007/978-981-16-3709-4

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  • A New Perspective on Agglomeration Economies in Japan : An Application of Productivity Analysis Reviewed

    Akihiro Otsuka( Role: Sole author)

    Springer Nature  2017.10  ( ISBN:9789811064890

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    Total pages:IX, 196   Language:English   Book type:Scholarly book

    This book describes various methods of analysis for ascertaining the effects of agglomeration economies, which are important for formulating regional economic policies. Specifically, it describes new analytical approaches using productivity and productive efficiency analyses as methods for understanding agglomeration economies. Additionally, the book provides application results for Japanese regions and proposes desirable regional policies. According to the new analytical methods advocated in this book, agglomeration economies are larger in major metropolitan areas than in local regions, and in the manufacturing sector than in the non-manufacturing sector. These results are consistent with general knowledge. Moreover, the majority of productivity growth pertaining to regional economies is explainable by improvements to accessibility. Improving accessibility for regions reduces transportation costs between them and strengthens agglomeration economies, which, in turn, enable the sustainable development of regional economies. Therefore, this book highlights the need not only to reinforce existing agglomeration areas, but also to form a network between these agglomerations and to strengthen it, so as to realize regional economic growth despite a decreasing population.

    DOI: 10.1007/978-981-10-6490-6

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  • Regional Energy Demand and Energy Efficiency in Japan : An Application of Economic Analysis Reviewed

    Akihiro Otsuka( Role: Sole author)

    Springer Nature  2016.10  ( ISBN:9783319475653

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    Total pages:VIII, 98   Language:English   Book type:Scholarly book

    This book describes structural analysis methods for examining energy demand and energy efficiency that are important in formulating regional economic and environmental policies. Beginning with ways of ascertaining regional energy demand, it describes methods for developing energy efficiency indicators and their determinants. Fluctuations in regional energy demand are largely explained by analyzing variations in energy intensity, and there is a strong association between energy efficiency indicators and energy intensity. The energy efficiency indicator proposed is consistent with fluctuations in energy intensity and is highly accurate. According to the empirical analysis using this indicator, energy efficiency is high in regions where population concentration has risen, as typified by "compact cities." As such, the book highlights the need to increase regional energy efficiency, to achieve regional economic growth despite growing environmental constraints, and the importance of forming and developing clusters to this end. The book is a valuable resource for planners, researchers and government employees.

    DOI: 10.1007/978-3-319-47566-0

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  • Economic Analysis of Industrial Agglomeration

    Akihiro Otsuka( Role: Sole author)

    University Education Press  2008.7  ( ISBN:9784887308527

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    Total pages:145   Language:Japanese   Book type:Scholarly book

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MISC

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Works

  • Regional Data on the Electricity Consumption in Japan: 1990-2015

    Akihiro Otsuka

    2023.5

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    Work type:Database science   Location:Elsevier Mendeley Data  

    The data recorded in this repository relate to electricity consumption in the region of Japan (for the period 1990-2015). This dataset can be used to analyze the impact of electricity price changes on electricity demand by region in the residential and industrial sectors. It can be classified into three categories: (i) regional sectoral electricity consumption data, (ii) regional sectoral electricity consumption intensity data, and (iii) regional sectoral electricity price data. Each data set is obtained directly on an annual basis, but all data are aggregated by region.

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Awards

  • Oishi Yasuhiko Award (Outstanding Paper Award)

    2022.10   The Japan Section of the Regional Science Association International   Assessment of the improvement in energy intensity by the new high-speed railway in Japan

    Akihiro Otsuka

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    Award type:Award from Japanese society, conference, symposium, etc.  Country:Japan

    The award is given to members who have made significant contributions to the development of regional studies through outstanding research papers, and whose research achievements are significant and significant.

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  • RSPP Annual Paper Award 2017

    2017.11   Regional Science Association International   Estimation and determinants of energy efficiency in Japanese regional economies

    Akihiro Otsuka, Mika Goto

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    Award type:Award from international society, conference, symposium, etc.  Country:United States

    The Award recognizes annually a scientist who have demonstrated creativity, merit and prospective effectiveness through the publication of a paper of remarkable quality in Regional Science Policy and Practice.

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  • Martin Beckmann RSAI Annual Award 2011

    2011.11   Regional Science Association International   Industrial agglomeration effects in Japan: productive efficiency, market access, and public fiscal transfer

    Akihiro Otsuka, Mika Goto, Toshiyuki Sueyoshi

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    Award type:Award from international society, conference, symposium, etc.  Country:United States

    The Award recognizes annually a regional science scholar or scholars who have demonstrated innovation and excellence in Regional Science research through the publication of a paper of outstanding merit in Papers in Regional Science.

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Research Projects

  • Empirical Study on Inter-regional Network and Borrowed Size Effect

    Grant number:22K01501  2022.4 - 2027.3

    Japan Society for the Promotion of Science  Grants-in-Aid for Scientific Research Grant-in-Aid for Scientific Research (C)  Grant-in-Aid for Scientific Research (C)

    OTSUKA Akihiro

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    Authorship:Principal investigator  Grant type:Competitive

    Grant amount:\4030000 ( Direct Cost: \3100000 、 Indirect Cost:\930000 )

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  • Empirical Study on Regional Economic Effects of High-Speed Transportation Network

    Grant number:18K01614  2018.4 - 2021.3

    Japan Society for the Promotion of Science  Grants-in-Aid for Scientific Research Grant-in-Aid for Scientific Research (C)  Grant-in-Aid for Scientific Research (C)

    OTSUKA Akihiro

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    Grant amount:\4290000 ( Direct Cost: \3300000 、 Indirect Cost:\990000 )

    This study clarifies the economic effects of high-speed transportation networks in the regional economy in Japan. To form a "super megaregion," which is the goal of the National Land Plan in Japan, we must consider desirable regional policies that achieve regional sustainable development goals. The development of a high-quality transportation network is expected to strengthen inter-regional networks and increase passenger travel. This study quantitatively clarified the extent to which inter-regional transportation networks affect the region's productivity and environmental efficiency by using a market access index that measures inter-regional networks' strength. Furthermore, based on the plentiful of the empirical results, this study provides desirable regional economic policies in Japan that contribute to regional sustainability.

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  • Development and Structural Analysis of Energy Efficiency Indicators in Japan Region

    Grant number:15K17067  2015.4 - 2018.3

    Japan Society for the Promotion of Science  Grants-in-Aid for Scientific Research Grant-in-Aid for Young Scientists (B)  Grant-in-Aid for Young Scientists (B)

    OTSUKA Akihiro

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    Authorship:Principal investigator 

    Grant amount:\2600000 ( Direct Cost: \2000000 、 Indirect Cost:\600000 )

    This research project developed a new energy efficiency index to evaluate the energy efficiency of Japan’s regional economy, and offered suggestions for energy efficiency improvement in the economy. Furthermore, by analyzing the socioeconomic factors influencing energy efficiency, this project discussed the importance of energy efficiency improvement in the development of regional economy. Based on the analysis results, this research discussed desirable regional policies for a low-carbon society. The results suggest that the spatial agglomeration of population and industries as well as increased traffic accessibility among regions may contribute to the improvement of energy efficiency in the regional economy. Moreover, it was quantitatively shown that the enhancement of productivity and electricity ratio are both compatible with the improvement of energy efficiency.

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  • Empirical Study on Energy Efficiency in Japan

    Grant number:24530287  2012.4 - 2015.3

    Japan Society for the Promotion of Science  Grants-in-Aid for Scientific Research Grant-in-Aid for Scientific Research (C)  Grant-in-Aid for Scientific Research (C)

    GOTO Mika, OTSUKA Akihiro

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    Authorship:Coinvestigator(s) 

    Grant amount:\4680000 ( Direct Cost: \3600000 、 Indirect Cost:\1080000 )

    This research project proposed a new integrated research framework that consisted of models and indexes to examine productive efficiency, energy efficiency and environmental efficiency of firms and regional economies. To this aim, we developed new DEA (data envelopment analysis) models and proposed a new use of SFA (Stochastic Frontier Analysis) models to examine the efficiency measures and applied them to data of firms and regional economies. From the results, this research project indicated importance of efficiency evaluation of firms and regional economies, not only from a perspective of productive efficiency but also energy efficiency and environmental efficiency.

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Teaching Experience

  • Special Lectures on Economic Policy

    2020.4 Institution:Graduate School of International Management, Yokohama City University

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    Level:Postgraduate 

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  • Economic Policy Research

    2020.4 Institution:Graduate School of International Management, Yokohama City University

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    Level:Postgraduate 

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  • Urban Economics

    2019.4 Institution:Yokohama City University

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    Level:Undergraduate (specialized) 

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  • Resource Economics

    2019.4 Institution:Yokohama City University

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    Level:Undergraduate (specialized) 

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  • Economic Policy I

    2019.4 Institution:Yokohama City University

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    Level:Undergraduate (specialized) 

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  • Economic Policy II

    2019.4 Institution:Yokohama City University

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    Level:Undergraduate (specialized) 

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  • Pre-seminar

    2019.4 Institution:Yokohama City University

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  • Seminar Series and Undergraduate Thesis Supervision

    2016.4 Institution:Yokohama City University

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  • Graduate Research Seminars (Master's and Doctoral levels)

    2016.4 Institution:Yokohama City University

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  • Urban Social Theory

    2016.4 - 2020.3 Institution:Graduate School of Urban Social and Cultural Studies, Yokohama City University

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    Level:Postgraduate 

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  • Advanced Industrial Location Theory

    2016.4 - 2020.3 Institution:Graduate School of Urban Social and Cultural Studies, Yokohama City University

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    Level:Postgraduate 

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  • Industrial Policy

    2016.4 - 2019.3 Institution:Yokohama City University

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    Level:Undergraduate (specialized) 

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  • Economic Location Theory

    2016.4 - 2019.3 Institution:Yokohama City University

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    Level:Undergraduate (specialized) 

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  • Urban Economy and Policy

    2016.4 - 2019.3 Institution:Yokohama City University

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    Level:Undergraduate (specialized) 

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  • Energy Economics

    2014.3 - 2019.3 Institution:Tohoku University, Graduate School of Engineering

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Social Activities

Media Coverage

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Academic Activities

  • Planning and Guest Editing of a Special Issue in an International Journal International contribution

    Role(s): Planning, management, etc.

    ( Asia-Pacific Journal of Regional Science, Springer Nature ) 2022.1

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    Guest Editor for Special Issue: “Regional Sustainability” (The Annals of Regional Science, Springer)

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  • Editorial and Review Activities International contribution

    Role(s): Peer review

    2016.4

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    Type:Peer review 

    Representative journals include:
    代表的な国際学術誌は以下の通り:
    Springer Nature
    • Asia-Pacific Journal of Regional Science
    • The Annals of Regional Science
    • Letters in Spatial and Resource Sciences
    • The Japanese Economic Review
    • Journal of Geographical Systems
    • Scientific Reports
    • Energy Efficiency
    • Environmental Science and Pollution Research
    • Humanities & Social Sciences Communications
    • Stochastic Environmental Research and Risk Assessment
    • International Journal of Economic Policy Studies
    • BMC Health Services Research
    Elsevier
    • Papers in Regional Science
    • Regional Science Policy and Practice
    • Energy Economics
    • Utilities Policy
    • The Electricity Journal
    Taylor & Francis
    • Regional Studies
    • Economics of Innovation and New Technology
    • Applied Economics
    • Applied Economics Letters
    • International Journal of Urban Sciences
    • Energy Sources, Part B: Economics, Planning, and Policy
    SAGE Publications
    • International Regional Science Review
    • Environment and Planning A
    • SAGE Open
    Other Publishers
    • Review of Urban and Regional Development Studies (Wiley-Blackwell)
    • International Journal of Public Health (Frontiers)

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