The effects of alternative carbon mitigation policies on Japanese industries

Makoto Sugino, Toshihide Arimura, Richard D. Morgenstern

    Research output: Contribution to journalArticle

    11 Citations (Scopus)

    Abstract

    To address the climate change issue, developed nations have considered introducing carbon pricing mechanisms in the form of a carbon tax or an emissions trading scheme (ETS). Despite the small number of programmes actually in operation, these mechanisms remain under active discussion in a number of countries, including Japan. Using an input-output model of the Japanese economy, this article analyses the effects of carbon pricing on Japan's industrial sector. We also examine the impact of a rebate programme of the type proposed for energy-intensive trade-exposed (EITE) industries in U.S. legislation, the Waxman-Markey Bill (H.R. 2454), and in the European Union's ETS. We find that a carbon pricing scheme would impose a disproportionate burden on a limited number of sectors - namely, pig iron, crude steel (converters), cement and other EITE industries. Out of 401 industries, 23 would be eligible for rebates according to the Waxman-Markey-type programme, whereas 122 industries would be eligible for rebates according to the E.U.-type programme, if adopted in Japan. Overall, despite the differences in coverage, we find that the Waxman-Markey and E.U. rebate programmes have roughly similar impacts in reducing the average burden on EITE industries.

    Original languageEnglish
    Pages (from-to)1254-1267
    Number of pages14
    JournalEnergy Policy
    Volume62
    DOIs
    Publication statusPublished - 2013 Nov

    Fingerprint

    mitigation
    Carbon
    industry
    carbon
    emissions trading
    Industry
    energy
    Pig iron
    Costs
    pollution tax
    Taxation
    Climate change
    pig
    European Union
    Cements
    legislation
    cement
    steel
    effect
    policy

    Keywords

    • Carbon leakage
    • Carbon price
    • Input-output analysis

    ASJC Scopus subject areas

    • Energy(all)
    • Management, Monitoring, Policy and Law

    Cite this

    The effects of alternative carbon mitigation policies on Japanese industries. / Sugino, Makoto; Arimura, Toshihide; Morgenstern, Richard D.

    In: Energy Policy, Vol. 62, 11.2013, p. 1254-1267.

    Research output: Contribution to journalArticle

    Sugino, Makoto ; Arimura, Toshihide ; Morgenstern, Richard D. / The effects of alternative carbon mitigation policies on Japanese industries. In: Energy Policy. 2013 ; Vol. 62. pp. 1254-1267.
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