IDEAS home Printed from https://ideas.repec.org/a/tpr/asiaec/v15y2016i3p66-88.html
   My bibliography  Save this article

Ecological Modernization in Japan: The Role of Interest Rate Subsidies and Voluntary Pollution Control Agreements

Author

Listed:
  • Robert J. R. Elliott

    (University of Birmingham)

  • Toshihiro Okubo

    (Keio University)

Abstract

The need for developed countries to take a lead in the global fight against climate change is generally acknowledged and was intrinsic to the 2015 Paris climate change agreement. An understanding of the way in which environmental policy in advanced nations has developed and which policies have had a significant impact on the reduction in the emissions of various pollutants may yield important policy prescriptions relevant to the current climate change negotiations. In this paper we consider how Japan's little-known environmental interest rate policy and voluntary pollution control agreements contributed to Japan's ecological modernization and how these policies compare with the more traditional regulatory approach. Our results show that Japan's use of an environmental interest rate policy was an effective policy as a complement to the more traditional regulatory approach.

Suggested Citation

  • Robert J. R. Elliott & Toshihiro Okubo, 2016. "Ecological Modernization in Japan: The Role of Interest Rate Subsidies and Voluntary Pollution Control Agreements," Asian Economic Papers, MIT Press, vol. 15(3), pages 66-88, Fall.
    • Handle: RePEc:tpr:asiaec:v:15:y:2016:i:3:p:66-88
    as

    Download full text from publisher

    File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/ASEP_a_00452
    File Function: link to full text pdf
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Cheon, Andrew & Urpelainen, Johannes & Lackner, Maureen, 2013. "Why do governments subsidize gasoline consumption? An empirical analysis of global gasoline prices, 2002–2009," Energy Policy, Elsevier, vol. 56(C), pages 382-390.
    2. repec:cii:cepiie:2014-q4-140-50 is not listed on IDEAS
    3. Durand-Lasserve, Olivier & Campagnolo, Lorenza & Chateau, Jean & Dellink, Rob, 2015. "Modelling of Distributional Impacts of Energy Subsidy Reforms: an Illustration with Indonesia," Climate Change and Sustainable Development 206853, Fondazione Eni Enrico Mattei (FEEM).
    4. Maxwell, John W & Lyon, Thomas P & Hackett, Steven C, 2000. "Self-Regulation and Social Welfare: The Political Economy of Corporate Environmentalism," Journal of Law and Economics, University of Chicago Press, vol. 43(2), pages 583-617, October.
    5. Bajona, Claustre & Kelly, David L., 2012. "Trade and the environment with pre-existing subsidies: A dynamic general equilibrium analysis," Journal of Environmental Economics and Management, Elsevier, vol. 64(2), pages 253-278.
    6. David L. Kelly, 2006. "Subsidies to Industry and the Environment," Working Papers 0602, University of Miami, Department of Economics.
    7. Anton, W.R.Q.Wilma Rose Q. & Deltas, George & Khanna, Madhu, 2004. "Incentives for environmental self-regulation and implications for environmental performance," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 632-654, July.
    8. Cole, Matthew A. & Elliott, Robert J.R. & Okubo, Toshihiro, 2010. "Trade, environmental regulations and industrial mobility: An industry-level study of Japan," Ecological Economics, Elsevier, vol. 69(10), pages 1995-2002, August.
    9. Hua Wang & Nlandu Mamingi & Benoit Laplante & Susmita Dasgupta, 2003. "Incomplete Enforcement of Pollution Regulation: Bargaining Power of Chinese Factories," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(3), pages 245-262, March.
    10. Hua Wang & Yanhong Jin, 2007. "Industrial Ownership and Environmental Performance: Evidence from China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 36(3), pages 255-273, March.
    11. Jean-Marc Burniaux & Jean Chateau, 2014. "Greenhouse gases mitigation potential and economic efficiency of phasing-out fossil fuel subsidies," International Economics, CEPII research center, issue 140, pages 71-88.
    12. van Beers, Cees & van den Bergh, Jeroen C. J. M., 2001. "Perseverance of perverse subsidies and their impact on trade and environment," Ecological Economics, Elsevier, vol. 36(3), pages 475-486, March.
    13. J Videras & A Alberini, 2000. "The appeal of voluntary environmental programs: which firms participate and why?," Contemporary Economic Policy, Western Economic Association International, vol. 18(4), pages 449-460, October.
    14. Pargal, Sheoli & Wheeler, David, 1996. "Informal Regulation of Industrial Pollution in Developing Countries: Evidence from Indonesia," Journal of Political Economy, University of Chicago Press, vol. 104(6), pages 1314-1327, December.
    15. Eric D. Ramstetter & Shahrazat Binti & Archanun Kohpaiboon & Dionisius Narjoko, 2013. "MNEs and Energy Efficiency in Southeast Asian Manufacturing," Asian Economic Papers, MIT Press, vol. 12(3), pages 120-147, Fall.
    16. Yu Matsuno, 2007. "Pollution control agreements in Japan: conditions for their success," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 8(2), pages 103-141, June.
    17. repec:cii:cepiei:2014-q4-140-5 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. HAMANO Masashige & OKUBO Toshihiro, 2021. "In Search of Lost Time: Firm Vintage and Macroeconomic Dynamics," Discussion papers 21015, Research Institute of Economy, Trade and Industry (RIETI).
    2. Matthew A. COLE & Robert R.J. ELLIOTT & OKUBO Toshihiro & Liyun ZHANG, 2017. "The Pollution Outsourcing Hypothesis: An empirical test for Japan," Discussion papers 17096, Research Institute of Economy, Trade and Industry (RIETI).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David L. Kelly, 2006. "Subsidies to Industry and the Environment," Working Papers 0602, University of Miami, Department of Economics.
    2. Yu Matsuno, 2007. "Pollution control agreements in Japan: conditions for their success," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 8(2), pages 103-141, June.
    3. Yu Matsuno, 2007. "Pollution control agreements in Japan: conditions for their success," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 8(2), pages 103-141, June.
    4. Bajona, Claustre & Kelly, David L., 2012. "Trade and the environment with pre-existing subsidies: A dynamic general equilibrium analysis," Journal of Environmental Economics and Management, Elsevier, vol. 64(2), pages 253-278.
    5. Wu JunJie & Wirkkala Teresa M., 2009. "Firms' Motivations for Environmental Overcompliance," Review of Law & Economics, De Gruyter, vol. 5(1), pages 399-433, June.
    6. Robert Innes & Abdoul G. Sam, 2008. "Voluntary Pollution Reductions and the Enforcement of Environmental Law: An Empirical Study of the 33/50 Program," Journal of Law and Economics, University of Chicago Press, vol. 51(2), pages 271-296, May.
    7. Kaiser, Kai & Schulze, Günther G., 2003. "International Competition and Environmental Expenditures: Empirical Evidence from Indonesian Manufacturing Plants," HWWA Discussion Papers 222, Hamburg Institute of International Economics (HWWA).
    8. Madhu Khanna, 2001. "Non‐Mandatory Approaches to Environmental Protection," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 291-324, July.
    9. Abdoul Sam, 2010. "Impact of government-sponsored pollution prevention practices on environmental compliance and enforcement: evidence from a sample of US manufacturing facilities," Journal of Regulatory Economics, Springer, vol. 37(3), pages 266-286, June.
    10. Nicholas Powers & Allen Blackman & Thomas Lyon & Urvashi Narain, 2011. "Does Disclosure Reduce Pollution? Evidence from India’s Green Rating Project," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(1), pages 131-155, September.
    11. Brouhle, Keith & Griffiths, Charles & Wolverton, Ann, 2009. "Evaluating the role of EPA policy levers: An examination of a voluntary program and regulatory threat in the metal-finishing industry," Journal of Environmental Economics and Management, Elsevier, vol. 57(2), pages 166-181, March.
    12. Markus Kitzmueller & Jay Shimshack, 2012. "Economic Perspectives on Corporate Social Responsibility," Journal of Economic Literature, American Economic Association, vol. 50(1), pages 51-84, March.
    13. Garth Heutel & David L. Kelly, 2013. "Incidence and Environmental Effects of Distortionary Subsidies," NBER Working Papers 18924, National Bureau of Economic Research, Inc.
    14. Anna Alberini & Kathleen Segerson, 2002. "Assessing Voluntary Programs to Improve Environmental Quality," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(1), pages 157-184, June.
    15. Anton, Wilma Rose Q., 2005. "The Choice of Management Practices: What Determines the Design of an Environmental Management System?," 2005 Annual meeting, July 24-27, Providence, RI 19503, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Cody Jones, 2013. "Moving Beyond Profit: Expanding Research to Better Understand Business Environmental Management," Sustainability, MDPI, vol. 5(6), pages 1-29, June.
    17. Wei, Hao & Zhou, Yaru, 2023. "The impact of international talent on environmental pollution: Firm-level evidence from China," Energy Economics, Elsevier, vol. 125(C).
    18. Garth Heutel & David L. Kelly, 2016. "Incidence, Environmental, and Welfare Effects of Distortionary Subsidies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(2), pages 361-415.
    19. Lise Tole & Gary Koop, 2013. "Estimating the impact on efficiency of the adoption of a voluntary environmental standard: an empirical study of the global copper mining industry," Journal of Productivity Analysis, Springer, vol. 39(1), pages 35-45, February.
    20. Na Li Dawson & Kathleen Segerson, 2008. "Voluntary Agreements with Industries: Participation Incentives with Industry-Wide Targets," Land Economics, University of Wisconsin Press, vol. 84(1), pages 97-114.

    More about this item

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tpr:asiaec:v:15:y:2016:i:3:p:66-88. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kelly McDougall (email available below). General contact details of provider: https://direct.mit.edu/journals .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.