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Fuel cells and the hydrogen revolution: Analysis of a strategic plan in Japan

Author

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  • Behling, Noriko
  • Williams, Mark C.
  • Managi, Shunsuke

Abstract

Japan may be the least likely country to start a revolution, but its new energy policy, if implemented successfully, will revolutionize Japan’s economy, society, and energy infrastructure. The new energy policy calls for the creation of a “hydrogen society” in which citizens will use hydrogen as their primary energy source. Hydrogen fuel would be produced from renewable sources and used to generate electricity at home and to power vehicles via fuel cells. The policy came into force in April 2015 and will guide Japan’s energy development for the next 25 years and perhaps beyond. The new policy is a determined response to the twin disasters faced on March 11, 2011, when Japan was struck by a Magnitude 9 earthquake and then a catastrophic tsunami, which devastated Japan’s economy, energy security, and environmental well-being. The new energy policy would substantially reduce Japan’s dependence on nuclear power as well as oil and gas-fired thermal power plants and would greatly strengthen the development of fuel cell systems that use hydrogen. Implemented in three broad phases over several decades, the policy would promote the development of fuel cells that are less costly, more efficient, and more durable, and it would develop hydrogen production, storage, and transport as well as fueling systems to support the widespread use of fuel cells. Over the long term, the hydrogen society could be integrated into Japan’s concept of a “smart community” that uses digital technologies and information and communication technologies to more efficiently generate and regulate the use of power. This paper examines how Japan laid the policy and legal framework in the 1990s to promote fuel cell and hydrogen development, compares Japan’s investment and policy strategies to those in the United States and the European Union, identifies the challenges Japan will face in broadly establishing a hydrogen society, assesses the potential economic benefits it might enjoy if the hydrogen society policy succeeds, and recommends that the new energy policy be more fully integrated with other initiatives to promote economic growth, more efficient communities, and a cleaner environment.

Suggested Citation

  • Behling, Noriko & Williams, Mark C. & Managi, Shunsuke, 2015. "Fuel cells and the hydrogen revolution: Analysis of a strategic plan in Japan," Economic Analysis and Policy, Elsevier, vol. 48(C), pages 204-221.
    • Handle: RePEc:eee:ecanpo:v:48:y:2015:i:c:p:204-221
    DOI: 10.1016/j.eap.2015.10.002
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    References listed on IDEAS

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    1. Șerban Georgescu, 2012. "Japan," Conjunctura economiei mondiale / World Economic Studies, Institute for World Economy, Romanian Academy.
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    Cited by:

    1. Lui, Jade & Chen, Wei-Hsin & Tsang, Daniel C.W. & You, Siming, 2020. "A critical review on the principles, applications, and challenges of waste-to-hydrogen technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    2. Chapman, Andrew J. & Itaoka, Kenshi, 2018. "Energy transition to a future low-carbon energy society in Japan's liberalizing electricity market: Precedents, policies and factors of successful transition," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2019-2027.
    3. Abdulrahman Joubi & Yutaro Akimoto & Keiichi Okajima, 2022. "A Production and Delivery Model of Hydrogen from Solar Thermal Energy in the United Arab Emirates," Energies, MDPI, vol. 15(11), pages 1-14, May.
    4. González Palencia, Juan C. & Araki, Mikiya & Shiga, Seiichi, 2016. "Energy, environmental and economic impact of mini-sized and zero-emission vehicle diffusion on a light-duty vehicle fleet," Applied Energy, Elsevier, vol. 181(C), pages 96-109.
    5. Trencher, Gregory & Taeihagh, Araz & Yarime, Masaru, 2020. "Overcoming barriers to developing and diffusing fuel-cell vehicles: Governance strategies and experiences in Japan," Energy Policy, Elsevier, vol. 142(C).
    6. George Halkos & Antonis Skouloudis, 2021. "Environmental technology development and diffusion: panel data evidence from 56 countries," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(1), pages 79-92, January.
    7. Vijai Kaarthi Visvanathan & Karthikeyan Palaniswamy & Dineshkumar Ponnaiyan & Mathan Chandran & Thanarajan Kumaresan & Jegathishkumar Ramasamy & Senthilarasu Sundaram, 2023. "Fuel Cell Products for Sustainable Transportation and Stationary Power Generation: Review on Market Perspective," Energies, MDPI, vol. 16(6), pages 1-21, March.
    8. Zolfagharinia, Hossein & Zangiabadi, Maryam & Hafezi, Maryam, 2023. "How much is enough? Government subsidies in supporting green product development," European Journal of Operational Research, Elsevier, vol. 309(3), pages 1316-1333.
    9. Kazuhiro Hikima & Masaharu Tsujimoto & Mizutomo Takeuchi & Yuya Kajikawa, 2020. "Transition Analysis of Budgetary Allocation for Projects on Hydrogen-Related Technologies in Japan," Sustainability, MDPI, vol. 12(20), pages 1-15, October.

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    More about this item

    Keywords

    Energy; Hydrogen; Fuel cell; Policy; Japan;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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