Abstract
In this study, the new computable general equilibrium model with simplified technology selection in Japan was developed, and this model was applied to the new mitigation target in Japan in 2020, which was announced in November 2013. If only the short-term cost effective energy saving technologies are introduced, the GDP loss in 2020 will be more than 1% compared with the BaU scenario. The simulation results represent that the GDP loss in 2020 will be less than 1% compared to the BaU scenario, when the countermeasures to promote the energy saving technologies by 2020 such as subsidy for energy saving technologies and acceleration of their introduction will be introduced widely. Moreover, when the energy saving technologies will be introduced sufficiently and the investment will be maintained, GDP in 2020 will be able to become more than that in the BaU scenario.
