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Tokyo’s Greenhouse Gas Emissions Trading Scheme: A Model for Sustainable Megacity Carbon Markets?

Author

Listed:
  • Sven Rudolph

    (University of Kassel)

  • Takeshi Kawakatsu

    (University of Kyoto)

Abstract

Megacities already account for a major part of global energy-related CO2 emissions with a strong tendency to increase; hence, future climate policy has to put a special emphasis on reducing big cities’ energy consumption, especially in a world, where global climate negotiations are deadlocked. Tokyo, the world’s biggest metropolis and emitter of greenhouse gases roughly comparable to Scandinavian countries, started the world’s first megacity carbon market in 2010, the design of which is unique, due to its focus on end-energy use in buildings. While the program only started in 2010, the first results are now available. Hence, the paper answers the question to what extend Tokyo’s new carbon market can be considered a worthwhile model for other cities as well as an additional building-stone in a bottom-up global climate policy regime. By applying up-to-date sustainability economics reasoning, the paper evaluates the design and the recent results of Tokyo’s carbon market, showing that, while there is still room for improvements, Tokyo has the potential to be a world leader in sustainable local climate policy.

Suggested Citation

  • Sven Rudolph & Takeshi Kawakatsu, 2012. "Tokyo’s Greenhouse Gas Emissions Trading Scheme: A Model for Sustainable Megacity Carbon Markets?," MAGKS Papers on Economics 201225, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  • Handle: RePEc:mar:magkse:201225
    as

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    File URL: https://www.uni-marburg.de/en/fb02/research-groups/economics/macroeconomics/research/magks-joint-discussion-papers-in-economics/papers/2012-papers/25-2012_rudolph.pdf
    File Function: First version, 2012
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Clayton Munnings & William Acworth & Oliver Sartor & Yong-Gun Kim & Karsten Neuhoff, 2016. "Pricing Carbon Consumption: A Review of an Emerging Trend," Discussion Papers of DIW Berlin 1620, DIW Berlin, German Institute for Economic Research.
    2. Endre Tvinnereim, 2014. "The bears are right: Why cap-and-trade yields greater emission reductions than expected, and what that means for climate policy," Climatic Change, Springer, vol. 127(3), pages 447-461, December.

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    More about this item

    Keywords

    climate policy; ETS; local; city; Tokyo;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R59 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Other

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