Climate Policy in Household Sector

Compared to the industry sector, the progress of energy conservation of the household sector is very slow. It is because the household sector is more diverse than the industrial sector, and regulatory enforcement is much more difficult. The government can stop firms’ operation if their environmental burden is too heavy but cannot stop household’s activities. Therefore, the government needs to find energy conservation policies that are supported by the public. Like other countries, the Japanese government has introduced various energy conservation measures to reduce the energy usage from households for the past several decades. It has introduced energy efficiency standards for energy-consuming durables and provided subsidies to promote energy-efficient products in recent years. At the same time, it has raised the price of energy in order to provide households with an appropriate incentive to conserve. In addition, it has promoted renewable energy usage in the household sector. Facing climate change, the Japanese government has not introduced energy conservation measures systematically but rather on an ad hoc basis. In this chapter, we review energy conservation measures implemented in the household sector in Japan. We then make policy recommendations to enhance the effectiveness of energy conservation measures in the household sector.