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An economic assessment of carbon tax reform to meet Japan’s NDC target under different nuclear assumptions using the E3ME model

Author

Listed:
  • Soocheol Lee

    (Meijo University)

  • Unnada Chewpreecha

    (Cambridge Econometrics)

  • Hector Pollitt

    (Cambridge Econometrics)

  • Satoshi Kojima

    (Institute for Global Environmental Strategies)

Abstract

The aim of this study is to investigate the macroeconomic impacts of Japan meeting its 2030 NDC GHG emission reduction target, using a carbon tax, under different assumptions about the share of nuclear in the power sector. We further investigate different ways to recycle revenues raised from carbon tax. The analysis was carried out using the global macro-econometric Energy-Environment-Economy model, E3ME, combined with the Future-Technology-Transformation model of the power sector, FTT-Power. Our analysis shows that Japan can meet its NDC target even with zero nuclear in the power mix, while increasing GDP above baseline by recycling the revenues gained from carbon taxes.

Suggested Citation

  • Soocheol Lee & Unnada Chewpreecha & Hector Pollitt & Satoshi Kojima, 2018. "An economic assessment of carbon tax reform to meet Japan’s NDC target under different nuclear assumptions using the E3ME model," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(2), pages 411-429, April.
    • Handle: RePEc:spr:envpol:v:20:y:2018:i:2:d:10.1007_s10018-017-0199-0
    DOI: 10.1007/s10018-017-0199-0
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    References listed on IDEAS

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    Cited by:

    1. Cheng Peng & Lu Zhao & Liwen Liu & Jia Chen, 2023. "The Influence of Environmental Protection Tax Law on Urban Land Green Use Efficiency in China: The Nonlinear Moderating Effect of Tax Rate Increase," Sustainability, MDPI, vol. 15(16), pages 1-18, August.
    2. Aileen Lam & Soocheol Lee & Jean-François Mercure & Yongsung Cho & Chun-Hsu Lin & Hector Pollitt & Unnada Chewpreecha & Sophie Billington, 2018. "Policies and Predictions for a Low-Carbon Transition by 2050 in Passenger Vehicles in East Asia: Based on an Analysis Using the E3ME-FTT Model," Sustainability, MDPI, vol. 10(5), pages 1-32, May.
    3. Zhou, Sheng & Tong, Qing & Pan, Xunzhang & Cao, Min & Wang, Hailin & Gao, Ji & Ou, Xunmin, 2021. "Research on low-carbon energy transformation of China necessary to achieve the Paris agreement goals: A global perspective," Energy Economics, Elsevier, vol. 95(C).
    4. Yu, Ping, 2020. "Carbon tax/subsidy policy choice and its effects in the presence of interest groups," Energy Policy, Elsevier, vol. 147(C).
    5. Shih, Hsiu-Ching & Chiang, Chia-Yun & Lai, Hsin-Chih & Hsiao, Min-Chuan & Chen, Li-Heng & Ma, Hwong-wen, 2023. "Assessing the nexus of electric vehicle and energy policies on health risks," Energy, Elsevier, vol. 282(C).

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