#94-DF-21 "Issues in the Joint Implementation Program"
          (Masahiro Kuroda,Wong Yu Ching and Takayuki Kiji, July 1995.)

A WHOLE SENTENCE

ABSTRACT

    According to the input-output tables compiled for the analysis of 
air-pollutants in Japan and China, total COŁ˛ emissions in China and 
Japan in 1985 amounted to 2.376 billion ton and 0.986 billion ton (in 
molecular mass of COŁ˛) 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 SOŁ˛). 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.