IDEAS home Printed from https://ideas.repec.org/p/jet/dpaper/dpaper656.html
   My bibliography  Save this paper

Optimal energy policy for a carbon tax in Japan

Author

Listed:
  • Shibata, Tsubasa

Abstract

Climate change is a global challenge that must be addressed at the international level. In December 2015, the Paris Agreement was adopted at the 21st session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP21) held in Paris. The Paris agreement is aimed at keeping global temperature increases below 2 °C. Toward this goal, the Japanese government plans to reduce greenhouse gas emissions by 26% by fiscal year 2030 compared with fiscal year 2013. In this study, we evaluate the feasibility of Japan’s energy policy for reducing CO2 emissions. We construct a macroeconometric model linked to an energy model to show the optimal future energy policy for Japan by applying optimal control to the social welfare function.

Suggested Citation

  • Shibata, Tsubasa, 2017. "Optimal energy policy for a carbon tax in Japan," IDE Discussion Papers 656, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper656
    as

    Download full text from publisher

    File URL: https://ir.ide.go.jp/?action=repository_action_common_download&item_id=48868&item_no=1&attribute_id=22&file_no=1
    File Function: First version, 2017
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gregory Chow, 1976. "An Approach to the Feedback Control of Nonlinear Econometric Systems," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 3, pages 297-309, National Bureau of Economic Research, Inc.
    2. Chow, Gregory C, 1978. "Evaluation of Macroeconomic Policies by Stochastic Control Techniques," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 311-319, June.
    3. Hiroyuki Kosaka & Takashi Yano, 2001. "Assessing Optimal CO2 Abatement Policies for the Kyoto Protocol: A Genetic Algorithms Approach," ERSA conference papers ersa01p32, European Regional Science Association.
    4. Ann F. Friedlaender, 1973. "Macro Policy Goals in the Postwar Period: A Study in Revealed Preference," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(1), pages 25-43.
    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. Benjamin M. Friedman, 2007. "What We Still Don't Know about Monetary and Fiscal Policy," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 38(2), pages 49-74.
    2. Özgür Orhangazi & Gary Dymski, 2023. "The Intellectual Odyssey of James R. Crotty: From the War on Vietnam to a Socialist Alternative to Global Capitalism," Review of Radical Political Economics, Union for Radical Political Economics, vol. 55(4), pages 714-724, December.
    3. Faust, Jon & Irons, John S., 1999. "Money, politics and the post-war business cycle," Journal of Monetary Economics, Elsevier, vol. 43(1), pages 61-89, February.
    4. Gerald T. Fox, 2009. "Partisan Divide on War and the Economy," Journal of Conflict Resolution, Peace Science Society (International), vol. 53(6), pages 905-933, December.
    5. Gerald Scully & D. Slottje, 1989. "The paradox of politics and policy in redistributing income," Public Choice, Springer, vol. 60(1), pages 55-70, January.
    6. H.M. Prast, 1996. "Inflation, unemployment and the position of the central bank: the opinion of the public," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 49(199), pages 415-454.
    7. Jon Faust & John S. Irons, 1996. "Money, politics and the post-war business cycle," International Finance Discussion Papers 572, Board of Governors of the Federal Reserve System (U.S.).
    8. Shibata, Tsubasa & Kosaka, Hiroyuki, 2018. "An econometric analysis of unconventional monetary policy : the cases of Japan and United States," IDE Discussion Papers 704, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    9. Lopez, Rigoberto A., 1988. "Political Economy of the United States Sugar Policies," Working Papers 115808, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    10. Gregory C. Chow, 1980. "Comparison of Econometric Models by Optimal Control Techniques," NBER Chapters, in: Evaluation of Econometric Models, pages 229-243, National Bureau of Economic Research, Inc.
    11. H.M. Prast, 1996. "Inflation, unemployment and the position of the central bank: the opinion of the public," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 49(199), pages 415-454.
    12. Ohlsson, Henry, 1992. "Job creation measures as activist fiscal policy -- an empirical analysis of policy reaction behavior," European Journal of Political Economy, Elsevier, vol. 8(2), pages 269-280, May.
    13. Deleau Michel & Malgrange Pierre, 1976. "Application des méthodes d'optimisation aux modèles macroéconomiques de politique économique (l')," CEPREMAP Working Papers (Couverture Orange) 7606, CEPREMAP.
    14. Meulendijks, P.J.F.G., 1987. "An exercise in welfare economics (II)," Research Memorandum FEW 285, Tilburg University, School of Economics and Management.
    15. David Kendrick, 1976. "Applications of Control Theory to Macroeconomics," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 2, pages 171-190, National Bureau of Economic Research, Inc.
    16. Benjamin M. Friedman, 1988. "Targets and Instruments of Monetary Policy," NBER Working Papers 2668, National Bureau of Economic Research, Inc.
    17. Dmitri Blueschke & Klaus Weyerstrass & Reinhard Neck, 2024. "How can the preferences of policy makers be operationalised in optimum control problems with macroeconometric models? A case study for Slovenian fiscal policies," Public Sector Economics, Institute of Public Finance, vol. 48(2), pages 151-169.
    18. Chang-kyu Lee, 1997. "A Simple Monetary Model of the Chinese Ecdonomy, 1958–1978," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 1(1), pages 151-174, December.
    19. Meulendijks, P.J.F.G., 1987. "An exercise in welfare economics (II)," Other publications TiSEM 5702d824-5ea8-49ea-b6a9-1, Tilburg University, School of Economics and Management.

    More about this item

    Keywords

    Energy policy; Climatic change; Environmental problems; Carbon tax; Energy model; Macroeconometric model; Optimal control;
    All these keywords.

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    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:jet:dpaper:dpaper656. 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: Michitaka Imamitsu (email available below). General contact details of provider: https://edirc.repec.org/data/idegvjp.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.