IDEAS home Printed from https://ideas.repec.org/p/ags/aaea09/49118.html
   My bibliography  Save this paper

Analysis of the regional impacts of Climate Policy in Japan

Author

Listed:
  • Okajima, Shigeharu

Abstract

After great improvements in energy efficiency in the 1970’s, Japan has made little progress in reducing energy consumption since 1990, the base year for the Kyoto Protocol. This study is motivated by the recent growing demands among policy makers to find all possibilities for saving energy. To make informed decisions on how to save energy, policy makers need detailed information on energy consumption structures within each jurisdiction. First, in this article, I decompose national level energy intensity into efficiency and activity effects with the Fisher Ideal index, and then estimate regressions on prefecture level residential electricity demand between 1990 and 2003. It is found that national level energy intensity declined by seventy three percent from 1970 to 2003; sixty three percent of the decline may be attributed to improvement in energy efficiency. Energy intensity, however, has slightly increased since early 1990’s. Secondly, this paper explores the impact of reduction of carbon emission on the economy. I find that the Japanese government needs to enact the environmental taxes on a $12/ton in order to meet the Kyoto Protocol. It is also found that imposing a $12/ton environmental tax reduces Japanese GDP by around six percent and equivalent variations in urban regions fall while equivalent variations in rural regions rise.

Suggested Citation

  • Okajima, Shigeharu, 2009. "Analysis of the regional impacts of Climate Policy in Japan," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49118, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea09:49118
    DOI: 10.22004/ag.econ.49118
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/49118/files/AAEA_paper_Shigeharu_Okajima_613526.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.49118?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mark D. Partridge & Dan S. Rickman, 1998. "Regional Computable General Equilibrium Modeling: A Survey and Critical Appraisal," International Regional Science Review, , vol. 21(3), pages 205-248, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chang Seung & Edward Waters, 2010. "Evaluating Supply-Side And Demand-Side Shocks For Fisheries: A Computable General Equilibrium (Cge) Model For Alaska," Economic Systems Research, Taylor & Francis Journals, vol. 22(1), pages 87-109.
    2. Lecca, Patrizio & Swales, Kim & Turner, Karen, 2011. "An investigation of issues relating to where energy should enter the production function," Economic Modelling, Elsevier, vol. 28(6), pages 2832-2841.
    3. Hodjat Ghadimi, 2008. "Energy in a Resource-based Regional Economy: A Dynamic General Equilibrium Analysis," Working Papers Working Paper 2008-02, Regional Research Institute, West Virginia University.
    4. Lofgren, Hans & Robinson, Sheman, 2002. "Spatial-network, general-equilibrium model with a stylized application," Regional Science and Urban Economics, Elsevier, vol. 32(5), pages 651-671, September.
    5. María Teresa Álvarez-Martínez & Clemente Polo, 2017. "The short-run effects of EU funds in Spain using a CGE model: the relevance of macro-closures," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-17, December.
    6. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
    7. Pappas, Nikos, 2008. "Can Migrants save Greece from Ageing? A Computable General Equilibrium Approach using G-AMOS," SIRE Discussion Papers 2008-04, Scottish Institute for Research in Economics (SIRE).
    8. Konstantinos Pouliakas & Deborah Roberts & Eudokia Balamou & Dimitris Psaltopoulos, 2014. "Modelling the Effects of Immigration on Regional Economic Performance and Wage Distribution: A Computable General Equilibrium (CGE) Analysis of Three European Union Regions," Regional Studies, Taylor & Francis Journals, vol. 48(2), pages 318-338, February.
    9. James A. Giesecke & John R. Madden, 2013. "Evidence-based regional economic policy analysis: the role of CGE modelling," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 6(2), pages 285-301.
    10. Bilgic, Abdulbaki & King, Stephen A. & Lusby, Aaron K. & Schreiner, Dean F., 2002. "Estimates of U.S. Regional Commodity Trade Elasticities of Substitution," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 32(2), pages 1-20.
    11. Byers, Steven & Cutler, Harvey & Davies, Stephen P., 2004. "Estimating Costs and Benefits of Economic Growth: A CGE-Based Study of Tax Incentives in a Rapidly Growing Region," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 34(4), pages 1-20.
    12. Kilgarriff, Paul & McDermott, T.K.J. & Vega, Amaya & Morrissey , Karyn & O’Donoghue, Cathal, 2018. "Flooding disruption and the impact on the spatial distribution of commuter’s income," Working Papers 309608, National University of Ireland, Galway, Socio-Economic Marine Research Unit.
    13. Dan S. Rickman, 2014. "Assessing Regional Quality of Life: A Call for Action in Regional Science," The Review of Regional Studies, Southern Regional Science Association, vol. 44(1), pages 1-12, Spring.
    14. Hermannsson, Kristinn & Lisenkova, Katerina & Lecca, Patrizio & McGregor, Peter G & Swales, J Kim, 2010. "The Importance of Graduates for the Scottish Economy: A Micro-to-Macro Approach," SIRE Discussion Papers 2010-80, Scottish Institute for Research in Economics (SIRE).
    15. Hakan Yilmazkuday, 2017. "Individual tax rates and regional tax revenues: a cross-state analysis," Regional Studies, Taylor & Francis Journals, vol. 51(5), pages 701-711, May.
    16. Dan S. Rickman, 2010. "Modern Macroeconomics And Regional Economic Modeling," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 23-41, February.
    17. Thomas Rutherford & Hannu Torma†, 2010. "Efficiency of Fiscal Measures in Preventing Out-migration from North Finland," Regional Studies, Taylor & Francis Journals, vol. 44(4), pages 465-475.
    18. Nicolaas Groenewold & Alfred Hagger & John Madden, 2003. "Interregional transfers: A political-economy CGE approach," Economics of Governance, Springer, vol. 82(4), pages 535-554, November.
    19. Lisenkova, Katya & McGregor, Peter & Pappas, Nikos & Swales, Kim & Turner, Karen & Wright, Robert E., 2007. "Macroeconomic Impacts of Demographic Change in Scotland: A Computable General Equilibrium Analysis," IZA Discussion Papers 2623, Institute of Labor Economics (IZA).
    20. Gilmartin, Michelle & Swales, Kim J. & Turner, Karen, 2008. "A comparison of results from MRIO and interregional computable general equilibrium (CGE) analyses of the impacts of a positive demand shock on the ‘CO2 trade balance’ between Scotland and the rest," SIRE Discussion Papers 2008-24, Scottish Institute for Research in Economics (SIRE).

    More about this item

    Keywords

    Environmental Economics and Policy; Resource /Energy Economics and Policy;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea09:49118. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.