IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v15y2018i11p2376-d178607.html
   My bibliography  Save this article

Effect of Subsidies and Tax Deductions on Promoting the Construction of Long-Life Quality Houses in Japan

Author

Listed:
  • Ken’ichi Matsumoto

    (Graduate School of Fisheries and Environmental Sciences, Nagasaki University, 1-14 Bunkyo-machi, Nagasaki 852-8521, Japan)

  • Yuki Yamamoto

    (Graduate School of Fisheries and Environmental Sciences, Nagasaki University, 1-14 Bunkyo-machi, Nagasaki 852-8521, Japan)

  • Nao Ohya

    (Faculty of Environmental Science, Nagasaki University, 1-14 Bunkyo-machi, Nagasaki 852-8521, Japan)

Abstract

Securing a quantity of houses for citizens has been the priority of housing policies in Japan. However, these policies shifted from quantity to quality in the 21st century, including the promotion of “long-life quality housing (LLQH)”, which contributes to a sustainable and healthy society for the residential sector. Since then, various policies have been introduced at the national and prefectural (local) levels to promote the construction of LLQH. Using panel data for 47 prefectures across seven years, this study aims to analyze the factors that Japanese households choose when constructing LLQH. Although various research on LLQH and similar housing exists, this study is the first attempt to empirically explore the factors that promote LLQH. We found that policy measures covering only LLQH were generally effective in promoting the construction of LLQH, and these policy measures were more effective than those covering both LLQH and other types of housing. National-level measures tended to be effective, whereas prefectural-level measures were not. Furthermore, although the effects of individual measures differed, the overall effects of policy measures were confirmed. In conclusion, providing economic incentives had a positive effect on promoting LLQH, and such measures were successful in achieving the intended purpose.

Suggested Citation

  • Ken’ichi Matsumoto & Yuki Yamamoto & Nao Ohya, 2018. "Effect of Subsidies and Tax Deductions on Promoting the Construction of Long-Life Quality Houses in Japan," IJERPH, MDPI, vol. 15(11), pages 1-16, October.
  • Handle: RePEc:gam:jijerp:v:15:y:2018:i:11:p:2376-:d:178607
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/15/11/2376/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1660-4601/15/11/2376/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Seyfang, Gill, 2010. "Community action for sustainable housing: Building a low-carbon future," Energy Policy, Elsevier, vol. 38(12), pages 7624-7633, December.
    2. James M. Poterba, 1991. "House Price Dynamics: The Role of Tax Policy," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(2), pages 143-204.
    3. Agne Prochorskaite & Chris Couch & Naglis Malys & Vida Maliene, 2016. "Housing Stakeholder Preferences for the “Soft” Features of Sustainable and Healthy Housing Design in the UK," IJERPH, MDPI, vol. 13(1), pages 1-15, January.
    4. James M. Poterba, 1990. "Taxation and Housing Markets: Preliminary Evidence on the Effects of Recent Tax Reforms," NBER Working Papers 3270, National Bureau of Economic Research, Inc.
    5. Poterba, James M, 1992. "Taxation and Housing: Old Questions, New Answers," American Economic Review, American Economic Association, vol. 82(2), pages 237-242, May.
    6. Miyeon Park & Sungho Tae, 2016. "Suggestions of Policy Direction to Improve the Housing Quality in South Korea," Sustainability, MDPI, vol. 8(5), pages 1-26, May.
    7. Beenstock, Michael & Felsenstein, Daniel, 2015. "Estimating spatial spillover in housing construction with nonstationary panel data," Journal of Housing Economics, Elsevier, vol. 28(C), pages 42-58.
    8. Mulliner, Emma & Smallbone, Kieran & Maliene, Vida, 2013. "An assessment of sustainable housing affordability using a multiple criteria decision making method," Omega, Elsevier, vol. 41(2), pages 270-279.
    9. Dubois, Maarten & Allacker, Karen, 2015. "Energy savings from housing: Ineffective renovation subsidies vs efficient demolition and reconstruction incentives," Energy Policy, Elsevier, vol. 86(C), pages 697-704.
    10. Nessa Winston & Montserrat Pareja Eastaway, 2008. "Sustainable Housing in the Urban Context: International Sustainable Development Indicator Sets and Housing," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 87(2), pages 211-221, June.
    11. Kobayashi, Masahiro, 2016. "The Housing Market and Housing Policies in Japan," ADBI Working Papers 558, Asian Development Bank Institute.
    12. Borsch-Supan, Axel & Pollakowski, Henry O., 1990. "Estimating housing consumption adjustments from panel data," Journal of Urban Economics, Elsevier, vol. 27(2), pages 131-150, March.
    13. Boehm, Thomas P. & Schlottmann, Alan M., 2014. "The dynamics of housing tenure choice: Lessons from Germany and the United States," Journal of Housing Economics, Elsevier, vol. 25(C), pages 1-19.
    14. Mulliner, Emma & Malys, Naglis & Maliene, Vida, 2016. "Comparative analysis of MCDM methods for the assessment of sustainable housing affordability," Omega, Elsevier, vol. 59(PB), pages 146-156.
    15. Knudstrup, Mary-Ann & Ring Hansen, Hanne Tine & Brunsgaard, Camilla, 2009. "Approaches to the design of sustainable housing with low CO2 emission in Denmark," Renewable Energy, Elsevier, vol. 34(9), pages 2007-2015.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jakub Adamec & Svatava Janoušková & Tomáš Hák, 2021. "How to Measure Sustainable Housing: A Proposal for an Indicator-Based Assessment Tool," Sustainability, MDPI, vol. 13(3), pages 1-14, January.
    2. Ikenna Stephen Ezennia & Sebnem Onal Hoskara, 2019. "Exploring the Severity of Factors Influencing Sustainable Affordable Housing Choice: Evidence from Abuja, Nigeria," Sustainability, MDPI, vol. 11(20), pages 1-25, October.
    3. Edmundas Kazimieras Zavadskas & Fausto Cavallaro & Valentinas Podvezko & Ieva Ubarte & Arturas Kaklauskas, 2017. "MCDM Assessment of a Healthy and Safe Built Environment According to Sustainable Development Principles: A Practical Neighborhood Approach in Vilnius," Sustainability, MDPI, vol. 9(5), pages 1-30, April.
    4. Jacob L. Vigdor, 2004. "Liquidity Constraints and Housing Prices: Theory and Evidence from the VA Mortgage," NBER Working Papers 10611, National Bureau of Economic Research, Inc.
    5. Gawlik Remigiusz & Głuszak Michał & Małkowska Agnieszka, 2017. "The Measurement of Housing Preferences in the Analytic Hierarchy Process," Folia Oeconomica Stetinensia, Sciendo, vol. 17(1), pages 31-43, June.
    6. Brain, Isabel & Prieto, Joaquin, 2021. "Understanding changes in the geography of opportunity over time: the case of Santiago, Chile," LSE Research Online Documents on Economics 109915, London School of Economics and Political Science, LSE Library.
    7. Ling Gai & Ying Jin & Binyuan Zhang, 2022. "An integrated method for hybrid distribution with estimation of demand matching degree," Journal of Combinatorial Optimization, Springer, vol. 44(4), pages 2782-2808, November.
    8. Bielecki, Marcin & Stähler, Nikolai, 2022. "Labor Tax Reductions In Europe: The Role Of Property Taxation," Macroeconomic Dynamics, Cambridge University Press, vol. 26(2), pages 419-451, March.
    9. Wenli Li & Edison Yu, 2022. "Real Estate Taxes and Home Value: Evidence from TCJA," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 43, pages 125-151, January.
    10. Hiller, Norbert & Lerbs, Oliver W., 2016. "Aging and urban house prices," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 276-291.
    11. Dieci, Roberto & Westerhoff, Frank, 2016. "Heterogeneous expectations, boom-bust housing cycles, and supply conditions: A nonlinear economic dynamics approach," Journal of Economic Dynamics and Control, Elsevier, vol. 71(C), pages 21-44.
    12. Stähler, Nikolai, 2019. "Who benefits from using property taxes to finance a labor tax wedge reduction?," Journal of Housing Economics, Elsevier, vol. 46(C).
    13. Dieci, Roberto & Westerhoff, Frank, 2015. "Heterogeneous expectations, boom-bust housing cycles, and supply conditions: A nonlinear dynamics approach," BERG Working Paper Series 99, Bamberg University, Bamberg Economic Research Group.
    14. Thomas Hemmelgarn & Gaetan Nicodeme & Ernesto Zangari, 2011. "The Role of Housing Tax Provisions in the 2008 Financial Crisis," Taxation Papers 27, Directorate General Taxation and Customs Union, European Commission.
    15. Eunyoung Kim & Eunkyoung Hwang, 2017. "Analysis of the Current Scoring Distribution by Evaluation Criteria in Korean Long-Life Housing Certification System Cases," Sustainability, MDPI, vol. 9(10), pages 1-20, October.
    16. Laura Tupenaite & Arturas Kaklauskas & Irene Lill & Ineta Geipele & Jurga Naimaviciene & Loreta Kanapeckiene & Linda Kauskale, 2018. "Sustainability Assessment of the New Residential Projects in the Baltic States: A Multiple Criteria Approach," Sustainability, MDPI, vol. 10(5), pages 1-21, May.
    17. Laura Tupenaite & Irene Lill & Ineta Geipele & Jurga Naimaviciene, 2017. "Ranking of Sustainability Indicators for Assessment of the New Housing Development Projects: Case of the Baltic States," Resources, MDPI, vol. 6(4), pages 1-21, October.
    18. Graeme O'Meara, 2015. "Housing Bubbles and Monetary Policy: A Reassessment," The Economic and Social Review, Economic and Social Studies, vol. 46(4), pages 521-565.
    19. Amin Vafadarnikjoo & Madjid Tavana & Tiago Botelho & Konstantinos Chalvatzis, 2020. "A neutrosophic enhanced best–worst method for considering decision-makers’ confidence in the best and worst criteria," Annals of Operations Research, Springer, vol. 289(2), pages 391-418, June.
    20. Todd Sinai & Joseph Gyourko, 2004. "The (Un)changing Geographical Distribution of Housing Tax Benefits: 1980–2000," NBER Chapters, in: Tax Policy and the Economy, Volume 18, pages 175-208, National Bureau of Economic Research, Inc.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:15:y:2018:i:11:p:2376-:d:178607. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.