The Role of Environmental Economics and Policy Studies in the Introduction of Carbon Pricing: What is the Contribution to Japanese Policy?

Abstract

Based on the author’s own experience, this paper reviews how environmental economics and policy studies have been involved in discussions in the councils and study groups of Japan’s Ministry of the Environment and Ministry of Economy, Trade and Industry, and looks ahead to the future role of such studies in the design of carbon pricing systems. Environmental economics and policy studies have produced some research in response to industry concerns about the effectiveness of carbon pricing, carbon leakage and economic impacts. Overall, the various studies conducted by members of the Society for Environmental Economics and Policy Studies have helped to advance the policy debate. We look forward to the contribution of environmental economics and policy studies to the detailed institutional design of carbon pricing.