Did the Japanese Patient Follow the Doctor's Orders? Mostly No! A Public Choice Analysis of Greenhouse Gas Emissions Trading Schemes in Japan Before and after the Earthquake

45 Pages Posted: 23 Nov 2011

See all articles by Sven Rudolph

Sven Rudolph

Kyoto University

Friedrich Schneider

Johannes Kepler University Linz - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Institute for the Study of Labor (IZA)

Date Written: November 23, 2011

Abstract

The Great Tōhoku-Earthquake and the following nuclear meltdown in Fukushima called the world’s attention to Japans’ energy and climate policy. Japan is one of the biggest emitters of greenhouses gases in the world and still far away from reaching its Kyoto target. Emissions trading systems have been used in Japanese climate policy since 2005. However, experiences have been disillusioning: Major emission reductions have not been achieved, and a functioning market does not exist. Hence, we ask what the political reasons for the failure of carbon markets in Japan are and how they can be overcome. We use Public Choice arguments, but also analyze actual climate policy making in Japan on a case study basis. Thus, on the one hand, we identify the political obstacles of implementing ambitious greenhouse gas emissions trading systems in Japan, and, on the other hand, we evaluate Public Choice’s arguments and environmental policy making.

Keywords: Japan, climate policy, emissions trading, public choice, case study

JEL Classification: D620, D720, D730, Q480, Q540, Q580

Suggested Citation

Rudolph, Sven and Schneider, Friedrich G., Did the Japanese Patient Follow the Doctor's Orders? Mostly No! A Public Choice Analysis of Greenhouse Gas Emissions Trading Schemes in Japan Before and after the Earthquake (November 23, 2011). CESifo Working Paper Series No. 3639, Available at SSRN: https://ssrn.com/abstract=1963639

Sven Rudolph (Contact Author)

Kyoto University ( email )

Yoshida-Honmachi
Sakyo-ku
Kyoto, 606-8501
Japan

Friedrich G. Schneider

Johannes Kepler University Linz - Department of Economics ( email )

Altenbergerstrasse 69
A-4040 Linz, 4040
Austria
+43 732 2468 8210 (Phone)
+43 732 2468 8208 (Fax)

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

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