The effects of alternative carbon mitigation policies on Japanese industries

Makoto Sugino, Toshi Arimura and Richard D. Morgenstern

Energy Policy, 2013, vol. 62, issue C, 1254-1267

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.

Keywords: Carbon price; Input–output analysis; Carbon leakage (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421513005818
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:62:y:2013:i:c:p:1254-1267

DOI: 10.1016/j.enpol.2013.06.074

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().