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The impact of the Tokyo emissions trading scheme on office buildings: what factor contributed to the emission reduction?

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  • Toshi H. Arimura

    (Waseda University
    Waseda University)

  • Tatsuya Abe

    (Waseda University
    Waseda University)

Abstract

Tokyo ETS is the first emissions trading scheme to control GHG emissions from office buildings. Although the Tokyo government claimed that Tokyo ETS had been successful, some argued that the emission reduction under Tokyo ETS was actually the result of electricity price increases triggered by the Great East Japan Earthquake in 2011. Using a facility-level data set for Japanese office buildings, we conducted an econometric analysis to examine the impact of Tokyo ETS. We found that half of the emission reduction is a result of the ETS, while the rest of the reduction is due to the electricity price increase. Another unique feature of Tokyo ETS is that an accurate permit price is not publicly available due to its design. Using our estimated model, we found that the price is approximately $50 per ton of CO2 in the early phase.

Suggested Citation

  • Toshi H. Arimura & Tatsuya Abe, 2021. "The impact of the Tokyo emissions trading scheme on office buildings: what factor contributed to the emission reduction?," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(3), pages 517-533, July.
    • Handle: RePEc:spr:envpol:v:23:y:2021:i:3:d:10.1007_s10018-020-00271-w
    DOI: 10.1007/s10018-020-00271-w
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    Cited by:

    1. Dawei Huang & Gang Chen, 2022. "Can the Carbon Emissions Trading System Improve the Green Total Factor Productivity of the Pilot Cities?—A Spatial Difference-in-Differences Econometric Analysis in China," IJERPH, MDPI, vol. 19(3), pages 1-18, January.
    2. Yuuki Yoshimoto & Koki Kishimoto & Kanchan Kumar Sen & Takako Mochida & Andrew Chapman, 2023. "Toward Economically Efficient Carbon Reduction: Contrasting Greening Plastic Supply Chains with Alternative Energy Policy Approaches," Sustainability, MDPI, vol. 15(17), pages 1-19, September.
    3. Lu, Guanyu & Sugino, Makoto & Arimura, Toshi H. & Horie, Tetsuya, 2022. "Success and failure of the voluntary action plan: Disaggregated sector decomposition analysis of energy-related CO2 emissions in Japan," Energy Policy, Elsevier, vol. 163(C).
    4. Dries Couckuyt & Toshi H. Arimura & Takuro Miyamoto & Naonari Yajima, 2023. "Green Policymaking in Japanese Municipalities: An Empirical Study on External and Internal Contextual Factors," Sustainability, MDPI, vol. 15(9), pages 1-26, April.
    5. Sadayuki, Taisuke & Arimura, Toshi H., 2021. "Do regional emission trading schemes lead to carbon leakage within firms? Evidence from Japan," Energy Economics, Elsevier, vol. 104(C).
    6. Lurdes Jesus Ferreira & Luís Pereira Dias & Jieling Liu, 2022. "Adopting Carbon Pricing Tools at the Local Level: A City Case Study in Portugal," Sustainability, MDPI, vol. 14(3), pages 1-20, February.
    7. Shiro Takeda & Toshi H. Arimura, 2020. "A Computable General Equilibrium Analysis of Environmental Tax Reform in Japan," RIEEM Discussion Paper Series 2002, Research Institute for Environmental Economics and Management, Waseda University.
    8. Mitsutsugu Hamamoto, 2021. "Impact of the Saitama Prefecture Target-Setting Emissions Trading Program on the adoption of low-carbon technology," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(3), pages 501-515, July.
    9. Satoshi Nakano & Ayu Washizu, 2021. "Analysis of inter-regional effects caused by the wide-area operation of the power grid in Japan: an implication for carbon pricing schemes," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(3), pages 535-556, July.
    10. Abe, Tatsuya & Arimura, Toshi H., 2022. "Causal effects of the Tokyo emissions trading scheme on energy consumption and economic performance," Energy Policy, Elsevier, vol. 168(C).
    11. Mitsutsugu Hamamoto, 2019. "Impact of the Saitama Prefecture Target-Setting Emissions Trading Program on the Adoption of Low-Carbon Technology," RIEEM Discussion Paper Series 1909, Research Institute for Environmental Economics and Management, Waseda University.
    12. Fernando Mata & Meirielly Santos Jesus & Concha Cano-Díaz & Maria Dos-Santos, 2023. "European Citizens’ Worries and Self-Responsibility towards Climate Change," Sustainability, MDPI, vol. 15(8), pages 1-13, April.

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    More about this item

    Keywords

    Emissions trading scheme; Electricity; Micro data; Office buildings; Climate change;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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