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Energy Consumption in Transition: Evidence from Facility-Level Data

In: Carbon Pricing in Japan

Author

Listed:
  • Naonari Yajima

    (Waseda University)

  • Toshi H. Arimura

    (Waseda University)

  • Taisuke Sadayuki

    (Seijo University)

Abstract

This chapter estimated the impact of the Tokyo emissions trading schemeTokyo ETS (ETS) and Saitama ETSSaitama ETS on energy consumption in the manufacturing sectorManufacturing sector using a facility-level panel data set compiled from the Current Survey of Energy ConsumptionCurrent Survey of Energy Consumption, a nationwide survey on energy consumption conducted by the Agency for Natural Resources and Energy in Japan. To our knowledge, no study has used this rich data set to perform sophisticated econometric analyses. We found that the Tokyo ETSTokyo ETS reduced electricity consumptionElectricity Consumption by 16%. On the other hand, we did not find evidences of switching from dirty fossil fuel to cleaner fuel associated with the introduction of the Tokyo ETSTokyo ETS. The impact of the Saitama ETSSaitama ETS on energy consumption was not statistically confirmed based on our samples. Additional studies are needed to identify the different impacts of the ETSs between Tokyo and Saitama. We also found that Japan has been experiencing long-term decreasing trends in the number of manufacturing facilities and the volume of fossil fuel consumption, which may reduce Japanese CO2 emissions in the long run.

Suggested Citation

  • Naonari Yajima & Toshi H. Arimura & Taisuke Sadayuki, 2021. "Energy Consumption in Transition: Evidence from Facility-Level Data," Economics, Law, and Institutions in Asia Pacific, in: Toshi H. Arimura & Shigeru Matsumoto (ed.), Carbon Pricing in Japan, chapter 0, pages 129-150, Springer.
    • Handle: RePEc:spr:eclchp:978-981-15-6964-7_8
    DOI: 10.1007/978-981-15-6964-7_8
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