Public Approval of Water Concessions Policy in Japan: A Probit Model Analysis of Key Influencing Factors

In this study, we investigated and assessed the factors influencing public perception and approval of water concessions in Japan. Specifically, we sought to identify the determinants of public approval of water concessions for two different regions in Japan. Given the lack of research on this topic in the Japanese context, we attempted to fill this gap to facilitate effective policy framing and decision-making regarding water utility management. We conducted a questionnaire survey of 300 residents in Miyagi Prefecture, which introduced concessions for water services, and 300 residents in Western Shizuoka Prefecture, including Hamamatsu City, which indefinitely postponed discussions on the introduction of concessions because of a lack of understanding among residents. Based on the questionnaire survey results, we identified the factors determining public approval of water concessions using a probit model. Comparisons of resident responses revealed no significant differences in approval rates between the two prefectures. Only approximately 10% of residents in both prefectures understood the meaning of public concessions, indicating that the level of awareness among residents was low. The probit model results revealed that the expectations of water services and general trust in the public sector influenced resident approval. Furthermore, older people and women were more likely to disapprove. Endogeneity analysis revealed that understanding of terminology does not necessarily influence approval, indicating that expectations are more significant than knowledge as a determining factor. Ours is the first study to compare resident responses in two prefectures where political judgment was divided regarding water concessions. Our findings are original in terms of identifying little variance in resident responses.