Issues in the Joint Implementation Program

According to the input-output tables compiled for the analysis of air-pollutants in Japan and China, total CO2 emissions in China and Japan in 1985 amounted to 2.376 billion ton and 0.986 billion ton (in molecular mass of CO2) respectively. For SOx, generations amounted to 23.4 million ton from China and 3.5 million ton from Japan, and emissions amounted to 20.31 million ton from China and 1.15 million ton from Japan (in molecular mass of SO2). By examining the difference in the pollution condition in the two countries, we found that there are great differences in energy efficiency across the industries. Measures such as the introduction of the environment tax and the establishment of the market for emission rights have been raised as possible policies against air pollution at the global level. The effects of environmental preservation policy on economic growth could be discussed in the following three perspectives, namely economic effectiveness, environmental effectiveness and equity. Firstly, for the issue on economic effectiveness, it may be further divided into the issues of economic efficiency and cost efficiency. Under perfect competition, it can be showed that market-based environmental policy instruments (the introduction of environmental tax and the creation of emission right market, etc.) are superior both in terms of economic efficiency and in the narrower definition of cost efficiency. However, even then there is no guarantee that these policy instruments satisfy the requirements on environmental effectiveness and equity with regard to costs and effects. From the point of view of balancing economic development and environmental preservation, the perspectives could also be extended to analyze the feasibility of an international joint implementation as an environmental policy. In discussing the effects of the implementation of the JI Project, it is important to consider the following 3 perspectives as in the case of all other policy instruments.

a) Environmental effectiveness - whether the implementation of the JI program is going to be useful as environmental preservation measures at the global level. b) Economic effects and the evaluation of their impacts - this issue involves the discussion on economic effectiveness, and we need to form a clear view regarding their impacts based on 2 points of view. One is on the issue regarding the compatibility of development goal and environmental goal, and the other is on the narrow definition of cost efficiency. c) Evaluation of equity - the issue regarding equity in achieving environmental preservation and equity in burden bearing.