Local municipalities which establish a fund for the preservation of water-source forest are on the increase. This research investigated the fund of Aichi Prefecture Toyota City. Accumulated money from Toyota citizens to the fund are collected through the add-on to the water rates, and Toyota City assigns a part of the yearly income of add-on to the cost of forest preservation activity. Although the reserved fund increases smoothly, through my investigation, I found that the fund wasn' t as for the original purpose of the forest preservation activity.
From the point of view of "Private provision model of Public Goods through Eco-Goods schemes by social entrepreneur", my analysis looks into this funding and points out the problems as following.
The reason why local municipalities give priority to reservation of the fund rather than the forest preservation activity is because their preferences to preservation of water-source forest are weak, and management are inefficient. It was guessed from the allotment of the yearly income of add-on, as well from starting forest preservation activity after requests for execution was taken from citizens. A decision on the amount of year reserving is entrusted to bureaucracy' s discretion, so funds are being used as one means of the budget scale expansion.