Development of a Digital Community Currency System to Promote the Use of Woody Biomass Thermal Energy: A Case Study of Mogami, Japan

Abstract

This study investigates community currencies (CCs) for forest resource utilization, focusing on the design of a digital CC system (digital CCS) in Mogami, Yamagata, Japan. The aim is to boost woody biomass (WB) thermal energy use and local economic and mutual aid activities. Building on Japan's "Ki-no-Eki" scheme, which has promoted self-employment forestry since 2003, this research examines its effectiveness and challenges. The designed digital CCS addresses two key areas: expanding involvement in local forestry by including thermal energy users, volunteers, and government service users as CC recipients, and diversifying funding through subsidies, donations, and decarbonization credits. We designed a circulation experiment in Mogami using the "Géné" digital CC, designed to promote local energy production/consumption, mutual aid, economic circulation, and healthy lifestyles. Géné features health stamp rewards, CO2 emission reduction feedback, and certified firewood from common forests. This digital CCS aimed to enhance the value of local forest resources and further local economic development and mutual aid. Future steps involve sharing survey results with residents and ongoing stakeholder discussions for Géné's development. This research offers insights into digital CCS as a tool for sustainable forest resource use, local economic circulation, and community engagement, providing valuable information for similar initiatives elsewhere.