Multiplier Impacts and Emission Reduction Effects of Joint Crediting Mechanism: Analysis with a Japanese and International Disaggregated Input-Output Table

29 Pages Posted: 9 Nov 2015

See all articles by Makoto Sugino

Makoto Sugino

Yamagata University

Minoru Morita

affiliation not provided to SSRN

Kazuyuki Iwata

Takasaki City University of Economics - Regional Policy

Toshi H. Arimura

Waseda University - School of Political Science and Economics

Date Written: October 2015

Abstract

The reduction of emissions from developing countries is essential in tackling climate change. The Clean Development Mechanism has been effective but criticized by various parties. In response, the Japanese government has proposed the Joint Crediting Mechanism (JCM).

Using the 2010 Japanese domestic and the 2005 Asian international input-output tables, we disaggregate the automobile industry and other electrical devices and parts industry to capture hybrid vehicles and solar panels. Moreover, we add the wind turbine industry and the geothermal turbine industry. In evaluating the JCM, we find that the multiplier impacts of hybrid vehicles, wind turbines and air conditioners are high, whereas boilers and solar panels produce smaller effects. In contrast, the results for the employment effects show that the coke dry quenching plants and lighting equipment create more jobs.

We also estimate the emission reduction from the JCM. Taking into account the lifetime of each product/technology and country-specific emission coefficients, we find that lighting equipment’s emission reductions are the greatest, whereas washing machines’ reductions are the least. Thus, it is important to choose the technologies/items suitable for the JCM by balancing their economic and reduction effects. The government must assess various technologies/items before determining the eligibility of each technology/item.

Suggested Citation

Sugino, Makoto and Morita, Minoru and Iwata, Kazuyuki and Arimura, Toshihide H., Multiplier Impacts and Emission Reduction Effects of Joint Crediting Mechanism: Analysis with a Japanese and International Disaggregated Input-Output Table (October 2015). Tokyo Center for Economic Research (TCER) Paper No. E-100. Available at SSRN: https://ssrn.com/abstract=2687628

Makoto Sugino

Yamagata University ( email )

Yamagata 990-8560
Japan

Minoru Morita

affiliation not provided to SSRN

Kazuyuki Iwata

Takasaki City University of Economics - Regional Policy ( email )

United States

Toshihide H. Arimura (Contact Author)

Waseda University - School of Political Science and Economics ( email )

1-6-1 Nishi-Waseda
Shinjuku-ku, Tokyo 169-8050, Tokyo 169-8050
Japan

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