Multiplier impacts and emission reduction effects of Joint Crediting Mechanism: analysis with a Japanese and international disaggregated input–output table

Makoto Sugino, Minoru Morita, Kazuyuki Iwata, Toshihide Arimura

    Research output: Contribution to journalArticle

    4 Citations (Scopus)

    Abstract

    The reduction of emissions from developing countries is essential in tackling climate change. The Clean Development Mechanism is effective in reducing greenhouse emissions but criticized by various parties. In response, the Japanese government has proposed the Joint Crediting Mechanism (JCM). Using the 2010 Japanese domestic and the 2005 Asian international input–output tables, we disaggregate the automobile industry and other electrical devices and parts industry to capture hybrid vehicles and solar panels. Moreover, we add the wind turbine industry and the geothermal turbine industry in our analysis. In evaluating the JCM, we find that the multiplier impacts of hybrid vehicles, wind turbines and air conditioners are high, whereas boilers and solar panels produce smaller effects. In contrast, the results for the employment effects show that the coke dry quenching plants and lighting equipment create more jobs. We also estimate the emission reduction from the JCM. Taking into account the lifetime of each product/technology and country-specific emission coefficients, we find that lighting equipment’s emission reductions are the greatest, whereas washing machines’ reductions are the least. Thus, it is important to choose the technologies/items suitable for the JCM by balancing their economic and reduction effects. The government must assess various technologies/items before determining the eligibility of each technology/item.

    Original languageEnglish
    Pages (from-to)1-23
    Number of pages23
    JournalEnvironmental Economics and Policy Studies
    DOIs
    Publication statusAccepted/In press - 2016 Sep 24

    Fingerprint

    wind turbine
    industry
    automobile industry
    clean development mechanism
    turbine
    developing world
    climate change
    effect
    emission reduction
    analysis
    Multiplier
    Emission reduction
    air
    economics
    Industry
    lighting
    vehicle
    Government
    Hybrid vehicle
    product

    Keywords

    • Climate change
    • Energy efficiency
    • International input–output tables
    • Joint Crediting Mechanism
    • Renewable energy

    ASJC Scopus subject areas

    • Economics and Econometrics
    • Management, Monitoring, Policy and Law

    Cite this

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    title = "Multiplier impacts and emission reduction effects of Joint Crediting Mechanism: analysis with a Japanese and international disaggregated input–output table",
    abstract = "The reduction of emissions from developing countries is essential in tackling climate change. The Clean Development Mechanism is effective in reducing greenhouse emissions but criticized by various parties. In response, the Japanese government has proposed the Joint Crediting Mechanism (JCM). Using the 2010 Japanese domestic and the 2005 Asian international input–output tables, we disaggregate the automobile industry and other electrical devices and parts industry to capture hybrid vehicles and solar panels. Moreover, we add the wind turbine industry and the geothermal turbine industry in our analysis. In evaluating the JCM, we find that the multiplier impacts of hybrid vehicles, wind turbines and air conditioners are high, whereas boilers and solar panels produce smaller effects. In contrast, the results for the employment effects show that the coke dry quenching plants and lighting equipment create more jobs. We also estimate the emission reduction from the JCM. Taking into account the lifetime of each product/technology and country-specific emission coefficients, we find that lighting equipment’s emission reductions are the greatest, whereas washing machines’ reductions are the least. Thus, it is important to choose the technologies/items suitable for the JCM by balancing their economic and reduction effects. The government must assess various technologies/items before determining the eligibility of each technology/item.",
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    author = "Makoto Sugino and Minoru Morita and Kazuyuki Iwata and Toshihide Arimura",
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    AU - Arimura, Toshihide

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