The Local Dimension of Energy and Environmental Policy in Japan

This paper examines the political economy of Japan's surprisingly restricted energy and environmental performance. Japan is generally depicted as a front-runner in addressing energy and environmental challenges. Certainly, the country responded adroitly to the oil shocks of the 1970s. And note Japan's energy-efficient infrastructure: its public transport ranks among the world's best. Indeed, one would expect Japan to lead on environmental and climate issues, especially in developing renewable energy. Japan is rich, has a history of public-sector activism, has virtually no domestic conventional energy reserves, needs an effective regional development policy, and faces daunting threats through the steadily rising wall of spillover effects from the oil age and climate change. But Japan is not leading on energy and climate change, and notably not in the race to develop sustainable energy. The major reason for this is the poor use of the public sector. This paper argues that Japan risks forfeiting an opportunity to revitalize its local economies and its global role with smarter energy and environmental policies.