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The Impact of the Tokyo Emissions Trading Scheme on Office Buildings: What factor contributed to the emission reduction?

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  • Toshi H. Arimura

    (Faculty of Political Science and Economics & Research Institute for Environmental Economics and Management (RIEEM), Waseda University, 1-6-1 Nishiwaseda, Shinjuku-ku, Tokyo, 169-8050, Japan.)

  • Tatsuya Abe

    (Graduate School of Economics, Waseda University, 1-6-1 Nishiwaseda, Shinjuku-ku, Tokyo, 169-8050, Japan.)

Abstract

The Tokyo ETS is the first emission trading scheme to control GHG emissions from office buildings. Although the Tokyo government claimed that Tokyo ETS had been successful, some argued that the emission reduction under Tokyo ETS was actually the result of electric power price increases triggered by the Great East Japan Earthquake in 2011. Using a facility-level data set for Japanese office buildings, we conducted an econometric analysis to examine the impact of Tokyo ETS. We found that half of the emission reduction is a result of the ETS, while the rest of the reduction is due to the electricity power price increase. Another unique feature of Tokyo ETS is that an accurate permit price is not publicly available due to its design. Using our estimated model, we found that the price is approximately $50 per ton of CO2 in the early phase.

Suggested Citation

  • Toshi H. Arimura & Tatsuya Abe, 2019. "The Impact of the Tokyo Emissions Trading Scheme on Office Buildings: What factor contributed to the emission reduction?," RIEEM Discussion Paper Series 1908, Research Institute for Environmental Economics and Management, Waseda University.
    • Handle: RePEc:was:dpaper:1908
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    References listed on IDEAS

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    4. Mortha, Aline & Yajima, Naonari & Arimura, Toshi H., 2024. "Impact of the feed-in-tariff exemption on energy consumption in Japanese industrial plants," Japan and the World Economy, Elsevier, vol. 69(C).
    5. Shiro Takeda & Toshi H. Arimura, 2020. "A Computable General Equilibrium Analysis of Environmental Tax Reform in Japan," RIEEM Discussion Paper Series 2002, Research Institute for Environmental Economics and Management, Waseda University.
    6. Mitsutsugu Hamamoto, 2021. "Impact of the Saitama Prefecture Target-Setting Emissions Trading Program on the adoption of low-carbon technology," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(3), pages 501-515, July.
    7. Satoshi Nakano & Ayu Washizu, 2021. "Analysis of inter-regional effects caused by the wide-area operation of the power grid in Japan: an implication for carbon pricing schemes," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(3), pages 535-556, July.
    8. Dawei Huang & Gang Chen, 2022. "Can the Carbon Emissions Trading System Improve the Green Total Factor Productivity of the Pilot Cities?—A Spatial Difference-in-Differences Econometric Analysis in China," IJERPH, MDPI, vol. 19(3), pages 1-18, January.
    9. Lu, Guanyu & Sugino, Makoto & Arimura, Toshi H. & Horie, Tetsuya, 2022. "Success and failure of the voluntary action plan: Disaggregated sector decomposition analysis of energy-related CO2 emissions in Japan," Energy Policy, Elsevier, vol. 163(C).
    10. Sadayuki, Taisuke & Arimura, Toshi H., 2021. "Do regional emission trading schemes lead to carbon leakage within firms? Evidence from Japan," Energy Economics, Elsevier, vol. 104(C).
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    13. Mitsutsugu Hamamoto, 2019. "Impact of the Saitama Prefecture Target-Setting Emissions Trading Program on the Adoption of Low-Carbon Technology," RIEEM Discussion Paper Series 1909, Research Institute for Environmental Economics and Management, Waseda University.
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    More about this item

    Keywords

    Emission Trading Scheme; Electricity; Micro Data; Office buildings; Climate Change;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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