Abstract
Japanese Government has promised to decrease CO2 emission by 6% until 2012 in comparison to the level of 90s in Kyoto in 1997. According to the grand plan, the government established a subsidy system in 2002 to assist enterprises planning modal shift from truck to rail or ship. Projects were chosen by auction procedure, depending upon the reduction rate of CO2 per million yen, in order to maximize the effects of subsidy. Most of enterprises had planned modal shift from truck to rail instead of ship transport because of higher CO2 emission rate per unit ton-km of railway as compared with ship. Annual budget for modal shift has been restricted by three million yen, so that it is only one twelfth of CO2 reduction volume expected in the grand plan by means of modal split.
