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Cost benefit analysis of the sulfur dioxide emissions control policy in Japan

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  • Ikuho Kochi
  • Shunji Matsuoka
  • Mushtaq Memon
  • Hiroaki Shirakawa

Abstract

This study attempted to examine the economic efficiency of the sulfur dioxide (SO 2 ) emissions control policy in Japan using a cost-benefit analysis (CBA). The SO 2 emissions control policy is divided into three stages by epochal policy decisions. Reducing the incidence of chronic bronchitis and asthma are the two main policy benefits considered in this study, and they are estimated mainly based on the cost of illness approach. Policy costs have been derived from private sector investments for pollution control to meet the pollution standards under command and control (CAC) regulations. The estimated results, using a social discount rate of 2.5%, indicate a cost-benefit ratio of 5.39 in stage 1 (1968–1973), 1.18 in stage 2 (1974–1983), and 0.41 in stage 3 (1984–1993). This result indicates that the CAC in Japan used to have strong efficiency but that this efficiency has decreased over time. Our paper suggests that it is necessary to reconsider policy approaches in light of policy efficiency and in moving from SO 2 to new target priority pollutants. Copyright Springer Japan 2001

Suggested Citation

  • Ikuho Kochi & Shunji Matsuoka & Mushtaq Memon & Hiroaki Shirakawa, 2001. "Cost benefit analysis of the sulfur dioxide emissions control policy in Japan," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 4(4), pages 219-233, December.
    • Handle: RePEc:spr:envpol:v:4:y:2001:i:4:p:219-233
    DOI: 10.1007/BF03354017
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    References listed on IDEAS

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    1. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
    2. Helfand, Gloria E, 1991. "Standards versus Standards: The Effects of Different Pollution Restrictions," American Economic Review, American Economic Association, vol. 81(3), pages 622-634, June.
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    Cited by:

    1. Don Fullerton & Garth Heutel, 2007. "Who bears the burden of a tax on carbon emissions in Japan?," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 8(4), pages 255-270, December.
    2. George Halkos & Shunsuke Managi & Kyriaki Tsilika, 2018. "Measuring air polluters’ responsibility in transboundary pollution networks," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(3), pages 619-639, July.

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