Economic Analysis of Carbon Pricing: Perspectives on the launch of the green transformation-emissions trading scheme (GX-ETS)

Table of Contents

In 2026, Japan’s emissions trading system will become mandatory. How should we design a system that seeks to achieve both decarbonization and economic growth? This book brings together research that explores the optimal design of Japanese-style carbon pricing from both theoretical and empirical perspectives.

Did carbon leakage actually occur? Can a “double dividend” be achieved? Drawing on market mechanisms, this book examines how CO₂ emissions can be reduced while promoting economic growth and structural transformation.

Introduction: Overview of Carbon Pricing
Chapter 1: Background to the Introduction of Carbon Pricing and the Role of Environmental Economics
Chapter 2: Ex-post Evaluation of Tokyo and Saitama ETS: CO₂ emissions reduction effects and carbon leakage
Chapter 3: What Carbon Pricing Brings to Japanese industry: Short-term impact evaluation using input-output table analysis
Chapter 4: Impact of Carbon Tax and Feed-in Tariff levy on Industry and Households: Quantitative evaluation using input-output table analysis
Chapter 5: ETS Considering International Competitiveness and Carbon Leakage: Output-based allocation (OBA) and carbon border adjustment
Chapter 6: The Carbon Tax Double Dividend: Carbon pricing for growth
Chapter 7: Tokyo ETS and the Potential for Innovation: Energy efficiency in office buildings
Chapter 8: Overview of the GX-ETS and Prospects for Phase II