IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Economy-wide impacts of consumer responses to environmental information disclosure in Tokyo and the other parts of Japan

Listed author(s):
  • Masaru Ichihashi

    (Graduate School for International Development and Cooperation, Hiroshima University)

  • Satoru Komatsu

    (Graduate School for International Development and Cooperation, Hiroshima University)

  • Shinji Kaneko

    (Graduate School for International Development and Cooperation, Hiroshima University)

Environmental problems such as global warming due to GHG emissions have necessitated some constraint in our economic activities, as many countries and many people around the world are concerned about these issues. Environmental and economic policies such as carbon tax are one such constraint. A tax policy can be interpreted as a desirable method that can lead the economy, which has to pay the social cost of false economic activity or market failure, to a more optimal path. However, this policy will surely raise prices of goods. On the one hand, this price rise will benefit the public sector, but on the other hand, consumers demand will decline. The magnitude of the reduction usually depends on the price elasticity of demand, and the increase in government gain depends on the necessity of the goods for the people. Therefore, it is not necessarily trivial to ask whether the total effect of rising energy prices will be negative. In addition, nowadays, many people are concerned about environmental problems, and there are indications that consumers tend to change their purchasing behavior regarding certain goods to take environmental concerns into account even if this necessitates paying a higher price. This paper will empirically prove how the rise in oil and gas prices due to environmental policies like carbon tax affects the total production/consumption when we take into account the change in consumer behavior reflecting their attitudes toward preventing global warming. The main result of the analysis using an input-output model and price elasticity of demand in several sectors will show that most of sectors do not experience a decline in production after a price rise except the biggest sector, real estate. In Japan, real estate might be the main target to support for consumer fs purchasing from the viewpoint of economic policy.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
File Function: First version, 2012
Download Restriction: no

Paper provided by Hiroshima University, Graduate School for International Development and Cooperation (IDEC) in its series IDEC DP2 Series with number 2-1.

in new window

Length: 21 pages
Date of creation: Jan 2012
Handle: RePEc:hir:idecdp:2-1
Contact details of provider: Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:hir:idecdp:2-1. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Keisuke Kawata)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.