Research Programs: International Trade and Investment

Comprehensive Research on Japanese Climate Policy: GX, EU carbon border adjustment mechanism and U.S. policy

Project Leader/Sub-Leader

ARIMURA Toshi H.

ARIMURA Toshi H. (Faculty Fellow)

Leader

Overview

This project will conduct interdisciplinary research on carbon pricing and subsidy policies, which are becoming increasingly widespread as climate change policies, from the perspective of trade and the environment. First, we will gather information on the EU's carbon border adjustment mechanism (CBAM) and the US Inflation Reduction Act. We conduct legal analysis of CBAM from the perspective of consistency with the WTO. Second, we will conduct an economic analysis of the EU's expanding CBAM; we will analyze how the expansion of products subject to CBAM will affect the Japanese and Asian economies. We will also conduct an economic analysis of the impact of the international expansion of CBAM and the carbon pricing that will be introduced in response to CBAM. Third, we will conduct an economic analysis of carbon pricing, which is scheduled to be introduced in Japan under GX and an ex-post evaluation of the regional carbon pricing in Japan. Specifically, we will examine the international competitiveness impact of the carbon levy. Moreover, we examine the effects of emissions trading schemes on the diffusion of CCS. 

September 2, 2024 - February 28, 2027

(During the research project period, the research activity period is set from September 2, 2024 , to August 31, 2026, and the data usage reporting period is set from September 1, 2026 to February 28, 2027.)