IDEAS home Printed from https://ideas.repec.org/p/boj/bojwps/wp23e10.html
   My bibliography  Save this paper

Energy Efficiency in Japan: Developments in the Business and Household Sectors, and Implications for Carbon Neutrality

Author

Listed:
  • Kosuke Aoki

    (University of Tokyo)

  • Jouchi Nakajima

    (Hitotsubashi University)

  • Masato Takahashi

    (Bank of Japan)

  • Tomoyuki Yagi

    (Bank of Japan)

  • Kotone Yamada

    (Bank of Japan)

Abstract

Recently the efforts toward decarbonization are spreading both in Japan and abroad. In this paper, we examine the developments in Japan's energy intensity, a measure of energy efficiency, and their background at the aggregate and sectoral levels. The main results are as follows. Energy efficiency in Japan improved considerably between the 1970s and the 1980s, mainly due to the progress in energy-saving technical changes in the business sector. Although the pace of improvement decelerated on the whole from the 1990s to the first half of the 2000s, Japan's energy efficiency has returned to a moderate improving trend, particularly in the household sector, in recent years. Our estimate using a simple model of the household sector shows that the recent improvement in aggregate energy efficiency may reflect households' purchases and utilization of energy-saving goods produced by the business sector. Further efforts are expected to be made in each sector to achieve carbon neutrality.

Suggested Citation

  • Kosuke Aoki & Jouchi Nakajima & Masato Takahashi & Tomoyuki Yagi & Kotone Yamada, "undated". "Energy Efficiency in Japan: Developments in the Business and Household Sectors, and Implications for Carbon Neutrality," Bank of Japan Working Paper Series 23-E-10, Bank of Japan.
    • Handle: RePEc:boj:bojwps:wp23e10
    as

    Download full text from publisher

    File URL: https://www.boj.or.jp/en/research/wps_rev/wps_2023/data/wp23e10.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Daron Acemoglu & Philippe Aghion & Leonardo Bursztyn & David Hemous, 2012. "The Environment and Directed Technical Change," American Economic Review, American Economic Association, vol. 102(1), pages 131-166, February.
    2. Tomoyuki Yagi & Kakuho Furukawa & Jouchi Nakajima, 2022. "Productivity Trends in Japan - Reviewing Recent Facts and the Prospects for the Post-COVID-19 Era -," Bank of Japan Working Paper Series 22-E-10, Bank of Japan.
    3. Hassler, John & Olovsson, Conny, 2012. "Energy-Saving Technical Change," CEPR Discussion Papers 9177, C.E.P.R. Discussion Papers.
    4. Jin, Hui & Jorgenson, Dale W., 2010. "Econometric modeling of technical change," Journal of Econometrics, Elsevier, vol. 157(2), pages 205-219, August.
    5. Ichiro Fukunaga & Mitsuhiro Osada, 2009. "Measuring Energy-Saving Technical Change in Japan," Bank of Japan Working Paper Series 09-E-5, Bank of Japan.
    6. Morikawa, Masayuki, 2012. "Population density and efficiency in energy consumption: An empirical analysis of service establishments," Energy Economics, Elsevier, vol. 34(5), pages 1617-1622.
    7. Daron Acemoglu & David Hemous & Lint Barrage & Philippe Aghion, 2019. "Climate Change, Directed Innovation, and Energy Transition: The Long-run Consequences of the Shale Gas Revolution," 2019 Meeting Papers 1302, Society for Economic Dynamics.
    8. Herrendorf, Berthold & Rogerson, Richard & Valentinyi, Ákos, 2014. "Growth and Structural Transformation," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 6, pages 855-941, Elsevier.
    9. Norsworthy, J R & Malmquist, David H, 1983. "Input Measurement and Productivity Growth in Japanese and U.S. Manufacturing," American Economic Review, American Economic Association, vol. 73(5), pages 947-967, December.
    10. Nakamura, Koji & Kaihatsu, Sohei & Yagi, Tomoyuki, 2019. "Productivity improvement and economic growth: lessons from Japan," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 57-79.
    11. David Popp, 2002. "Induced Innovation and Energy Prices," American Economic Review, American Economic Association, vol. 92(1), pages 160-180, March.
    12. Hamamoto, Mitsutsugu, 2006. "Environmental regulation and the productivity of Japanese manufacturing industries," Resource and Energy Economics, Elsevier, vol. 28(4), pages 299-312, November.
    13. Masato Higashi & Hiroshi Kawata, 2017. "Recent Developments in Durable Goods Consumption: A Perspective from Spectrum Analysis," Bank of Japan Research Papers 17-03-17, Bank of Japan.
    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. Philippe Aghion & Antoine Dechezleprêtre & David Hémous & Ralf Martin & John Van Reenen, 2016. "Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 1-51.
    2. Takeshi Niizeki, 2012. "Energy-Saving Technological Change in Japan," Global COE Hi-Stat Discussion Paper Series gd11-218, Institute of Economic Research, Hitotsubashi University.
    3. Jonathan T. Hawkins-Pierot & Katherine R. H. Wagner, 2022. "Technology Lock-In and Optimal Carbon Pricing," CESifo Working Paper Series 9762, CESifo.
    4. Patricia Laurens & Christian Le Bas & Stéphane Lhuillery & Antoine Schoen, 2017. "The determinants of cleaner energy innovations of the world’s largest firms: the impact of firm learning and knowledge capital," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(4), pages 311-333, May.
    5. Yoshiyuki Kurachi & Hajime Morishima & Hiroshi Kawata & Ryo Shibata & Kazuma Bunya & Jin Moteki, 2022. "Challenges for Japan's Economy in the Decarbonization Process," Bank of Japan Research Papers 22-06-09, Bank of Japan.
    6. Lazkano, Itziar & Nøstbakken, Linda & Pelli, Martino, 2017. "From fossil fuels to renewables: The role of electricity storage," European Economic Review, Elsevier, vol. 99(C), pages 113-129.
    7. Lazkano, Itziar & Pham, Linh, 2016. "Do Fossil fuel Taxes Promote Innovation in Renewable Electricity Generation?," Discussion Paper Series in Economics 16/2016, Norwegian School of Economics, Department of Economics.
    8. Jonathan T. Hawkins-Pierot & Katherine R. H. Wagner, 2023. "Technology Lock-In and Costs of Delayed Climate Policy," Working Papers 23-33, Center for Economic Studies, U.S. Census Bureau.
    9. Marin, Giovanni & Vona, Francesco, 2021. "The impact of energy prices on socioeconomic and environmental performance: Evidence from French manufacturing establishments, 1997–2015," European Economic Review, Elsevier, vol. 135(C).
    10. repec:hal:spmain:info:hdl:2441/1jrfjrj6fp8t6q12fv5lra520c is not listed on IDEAS
    11. Zhijun Feng & Wei Chen, 2018. "Environmental Regulation, Green Innovation, and Industrial Green Development: An Empirical Analysis Based on the Spatial Durbin Model," Sustainability, MDPI, vol. 10(1), pages 1-22, January.
    12. Carraro, Carlo & De Cian, Enrica & Nicita, Lea & Massetti, Emanuele & Verdolini, Elena, 2010. "Environmental Policy and Technical Change: A Survey," International Review of Environmental and Resource Economics, now publishers, vol. 4(2), pages 163-219, October.
    13. Jan Witajewski-Baltvilks & Elena Verdolini & Massimo Tavoni, 2015. "Directed Technological Change and Energy Efficiency Improvements," Working Papers 2015.78, Fondazione Eni Enrico Mattei.
    14. Óscar Afonso & Liliana Fonseca & Manuela Magalhães & Paulo B. Vasconcelos, 2021. "Directed technical change and environmental quality," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 20(1), pages 71-97, January.
    15. Witajewski-Baltvilks, Jan & Verdolini, Elena & Tavoni, Massimo, 2017. "Induced technological change and energy efficiency improvements," Energy Economics, Elsevier, vol. 68(S1), pages 17-32.
    16. Peng Li & Yaofu Ouyang, 2020. "Technical Change and Green Productivity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(2), pages 271-298, July.
    17. Acemoglu, Daron & Rafey, Will, 2023. "Mirage on the horizon: Geoengineering and carbon taxation without commitment," Journal of Public Economics, Elsevier, vol. 219(C).
    18. Casey, Gregory, "undated". "Energy Efficiency and Directed Technical Change: Implications for Climate Change Mitigation," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259959, Agricultural and Applied Economics Association.
    19. Hémous, David, 2016. "The dynamic impact of unilateral environmental policies," Journal of International Economics, Elsevier, vol. 103(C), pages 80-95.
    20. Hu, Hui & Qi, Shaozhou & Chen, Yuanzhi, 2023. "Using green technology for a better tomorrow: How enterprises and government utilize the carbon trading system and incentive policies," China Economic Review, Elsevier, vol. 78(C).
    21. Francesco Vona & Francesco Nicolli & Lionel Nesta, 2012. "Determinants of renewable energy innovation: environmental policies vs. market regulation," Sciences Po publications 2012-05, Sciences Po.

    More about this item

    Keywords

    Climate Change; Carbon Neutrality; Energy Efficiency; Technical Change;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    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:boj:bojwps:wp23e10. 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: Bank of Japan (email available below). General contact details of provider: https://edirc.repec.org/data/bojgvjp.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.