Policy transformations in Japan to tackle energy and environmental issues for economic growth

Lee Tae-Yeoun

Chapter 2 in Handbook on Economic Growth and the Environment, 2026, pp 39-61 from Edward Elgar Publishing

Abstract: Japan faces significant energy and environmental challenges, including high dependence on fossil fuels, costly energy imports, slow adoption of renewable energy, and the uncertain future of nuclear power post-Fukushima. In response, systematic policies have been introduced, but the energy mix outlined in the 2015 Long-Term Energy Demand and Supply Outlook remains largely unchanged, with a 20% nuclear target for 2030. Meanwhile, the 2030 renewable energy target was raised from an initial 22–24% in 2015 to 36–38% in 2021. In 2025, the target for 2040 was further increased to 40–50%. Achieving 100% renewable energy is hindered by challenges in national grid integration and control technology for seasonal fluctuations. To address these issues, Japan is advancing Green Transformation (GX) initiatives to achieve carbon neutrality by 2050 while balancing cost reduction and economic growth. This chapter examines Japan's evolving energy policies, strategies for sustainability, and the economic implications of transitioning to a low-carbon future.

Keywords: Japan's Energy and Environmental Issues; Strategic Energy Plan; Carbon Neutrality; Green Transformation; GX; Economic Growth (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035322589
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