Use of the Forest Environment Transfer Tax for forest data development and exchange: evidence from all 47 prefectures in Japan

Abstract To facilitate forest management as part of climate change mitigation and adaptation, the Forest Environment Transfer Tax (FETT) was introduced in Japan in 2019, representing a form of payment for ecosystem services. In this study, we focused on the introduction of the tax and the status of its use based on an analysis covering Japan’s 47 prefectures. This involved reviewing policy processes related to FETT and conducting a survey among relevant prefectural officers to identify how FETT is being used, with a focus on plans, policies, and systems related to forest data development and exchanges. The proportions of both total and FETT budgets used for forest data development were significant. Several prefectures are improving forest-related data in a two-way manner by coordinating with municipalities. Correlation analysis revealed that prefectures with greater proportions of privately owned forests allocated more budget to forest data development, which is in line with the FETT’s intended purpose. This result suggests that the absolute size of such forestlands is less important, but that the proportion of privately owned forests carries political and social weight that could be a critical factor in budget allocation.