2017 Volume 13 Issue 1 Pages 31-38
Objective. The objective of this paper is to introduce concept and level of carbon price, and ex-post evaluation of climate mitigation policy based on literature survey and to discuss carbon price and the related issues.
Results and Discussion. The literature survey suggests that（i）social cost of carbon based on future loss and damage from climate change varies by scientific uncertainty and value judgement, （ii）divergence of carbon price among region could pose a risk of carbon leakage, （iii）in order to realize the Japan’s Intended Nationally Determined Contribution（INDC）, Japan has to conduct significant climate mitigation efforts including high-cost mitigation measures which correspond to marginal abatement cost of around 380 US2000$/tCO2, and（iv）emission trading system（ETS）is the controversial issue in Japan, and the low carbon price in EU ETS has not provided sufficient incentives to motivate additional mitigation action.
Conclusions. This paper concludes that Japan has to conduct very high-cost emission reductions for realization of the INDC while there are large differences in regional marginal abatement costs and uncertainty in social cost of carbon.
