RIETI will research the remaining regulatory reforms to be tackled and develop microeconomic models for objective assessment of government policies.
1. Economic Analysis of Markets and Networks in Electricity Power Reform
Project Leader
Sub-Leader
Overview
In order to assist system reform in the electricity industry in Japan we will conduct more realistic research than previously into the issues of performance evaluation and system design in regard to the electric power market and the electricity transmission network, primarily from an economic perspective. Based on the results of project research conducted up to fiscal 2005, we have completed a number of prototype models for conducting quantitative evaluation and analysis concerning the electric power market and the electricity transmission network. In the project from fiscal 2006 onward we will further refine and develop these prototype models in line with the realities of the situation. After that, we will assemble and arrange the actual transaction data from 2005 onwards, and carry out more realistic quantitative evaluation and analysis for the purpose of assisting the continuous monitoring of the wholesale electric power exchanges, and investigation of impacts of changes in the system. In addition, with regard to individual system design issues relating to the market and the network, with a view to assisting ongoing system reform we will conduct applied research focusing on the application of these to real situations.
Major Research Results
RIETI Discussion Papers
- "A Spatial Equilibrium Analysis of Transmission Charge Reform in Japan's Electric Power Industry" (AKIYAMA Shu-ichi and HOSOE Nobuhiro)
2. Simulation Models for Policy Evaluation
Project Leader
KANEMOTO Yoshitsugu, Faculty Fellow
Overview
Applied general equilibrium models have been put into use for policy evaluation in fields such as energy policy, but owing to the large scale of the models it has tended to be difficult to evaluate their reliability. In this research we aim to assess the benefits and costs of each policy option by using small-scale microeconomic models to facilitate preparation and comprehension at the time of policy-making. The primary targets of the policy simulation will be countermeasures for global warming and the Japanese-style liberalization of the electric power market. With regard to the countermeasures for global warming we will analyze the effects of policies in specific fields such as automobiles. As for the liberalization of the electric power market, we will analyze the characteristics of Japanese system designs compared with those of other countries, and evaluate the various policy options.
Major Research Results
RIETI Discussion Papers
- "Quantitative Policy Evaluation of the Front Runner Method Household Appliance Efficiency Standards Regulations in Japan by Cost-benefit Analysis" (KAINOU Kazunari)
- "Quantitative Policy Evaluation of the Front Runner Method Regulations for Fuel Consumption Standards for Passenger Cars in Japan by Cost-benefit Analysis" (KAINOU Kazunari)
