Negative side“Japan should initiate a Pan-PacificInternational Carbon Trading” by IKENO Shuma Japan should initiatea Pan-Pacific Carbon Tax １. On the model, a carbon tax is superior to a carbon trading. 2. A carbon tax can be expected effective. ３. A carbon tax is familiar to many countries. Background Background A model of a single Polluting Firm.B is government revenue. A model withTwo Polluting Firm.The shadow square is government revenue. Both a carbon tax and carbon cap-and-trade will achieve the same level of increased efficiency by achieving the optimal abatement level at the minimum cost. Japan’s debt against GDPis over 230%.Japan needs tax revenue.And, payment risk is high. 2. A carbon tax can be expected effective. World carbon dioxide emissions by fossil fuelis 45.4% in 2005 Fossil Fuel Emissions of the world is increasing. In Japan, coal-fired power generation is increasing. Fossil fuels are a major cause of global warming. 　　　　　　　　　　　↓ “China said this week that the country would implement new taxes designed to curb greenhouse gas emissions” Japan introduced the petroleum coal tax in 2002 . Japan should initiatea World-Wide Carbon Tax １. On the model, a carbon tax is superior to a carbon trading. 2. A carbon tax can be expected effective. ３. A carbon tax is familiar to many countries.

1. Negative side
“Japan should initiate a Pan-Pacific
International Carbon Trading”
by IKENO Shuma
1

2. Japan should initiate
a Pan-Pacific Carbon Tax
Our Opinion
2

3. １. On the model, a carbon tax is superior to a carbon trading.
2. A carbon tax can be expected effective.
３. A carbon tax is familiar to many countries.
Reasons
3

4. Background
IPCC Fourth Assessment Report
Keep the average temperature rise within 2℃ in
2050 comparing the Industrial revolution before.
The amount of CO₂ emission around the world
have to be reduced more than 50% by 2050.
4

5. Background
Japan is in the 5th position.
China and India account
for 30% of emissions.
Source: Japan Center for Climate Change Action
Carbon dioxide emissions ranking of the world
5

6. A model of a single
Polluting Firm.
B is government revenue.
１．On the model, a carbon tax is superior to carbon trading.
6
＄
Carbon Abatement
Tax
Marginal Abatement Cost
BA
Carbon tax in single firm model
Source: ECON101 Carbon Tax vs. Cap-and-Trade

7. A model with
Two Polluting Firm.
The shadow square is
government revenue.
7
＄
Carbon Abatement
Tax
Marginal
Abatement Cost
Carbon tax in two firm model
Source: ECON101 Carbon Tax vs. Cap-and-Trade
＄
１．On the model, a carbon tax is superior to carbon trading.

8. Both a carbon tax and carbon cap-and-trade
will achieve the same level of increased efficiency
by achieving the optimal abatement level at the
minimum cost.
8
But, a carbon tax makes the government revenue.
Source: ECON101 Carbon Tax vs. Cap-and-Trade
１．On the model, a carbon tax is superior to carbon trading.

9. Japan’s debt against GDP
is over 230%.
Japan needs tax revenue.
And, payment risk is high.
Debt against GDP in each country
Source:財務省『財政健全化目標の達成に向けて』
１．On the model, a carbon tax is superior to carbon trading.

10. 2. A carbon tax can be expected effective.
In America, if a carbon tax
of $30 per tonne was
adopted by the
government, they can cut
9.2% CO2 emissions.
Source: Graduate School of Business UNE
Effect of carbon tax
10

11. 11
Source: zanran
2. A carbon tax can be expected effective.
World Carbon Dioxide Emissions by Fossil Fuel
World carbon dioxide
emissions by fossil fuel
is 45.4% in 2005

12. 12
Source: The Maldives and Climate Change
2. A carbon tax can be expected effective.
Total Fossil Fuel Emissions by Country
Fossil Fuel Emissions of
the world is increasing.

13. 13
Source: 「温室ガス排出５～６％増 計画中の石炭火
力、運転なら ２０３０年ごろ試算」『朝日新聞』
2015年3月28日日日刊。
2. A carbon tax can be expected effective.
Changes in CO2 emissions from coal -fired power
In Japan, coal-fired
power generation is
increasing.

14. Fossil fuels are a major cause of global warming.
↓
14
It is effective to impose a tax to the carbon.
2. A carbon tax can be expected effective.

15. 1990 Finland Sweden
1991 Norway
1992 Netherlands
1996 Denmark
1999 Germany
2001 United Kingdom
2006 Boulder City in Colorado
2008 Canada
Source:環境省『諸外国のCO2削減のための税制度』
Countries that have introduced a carbon tax.
15
3. A carbon tax is familiar to many countries.

16. “China said this week that the country would implement
new taxes designed to curb greenhouse gas emissions”
16
Source: Vikas Bajaj, “Taxing Carbon” The New
York Times, February 20, 2013.
3. A carbon tax is familiar to many countries.

17. Japan introduced
the petroleum coal
tax in 2002 .
Changes in fuel prices in Japan
Source:
経済産業省資源エネルギー庁『石炭政策について』
3. A carbon tax is familiar to many countries.

18. １. On the model, a carbon tax is superior to a carbon trading.
2. A carbon tax can be expected effective.
３. A carbon tax is familiar to many countries.
Reasons
18
Japan should initiate
a World-Wide Carbon Tax

19. ・神取道宏『ミクロ経済学の力』日本評論社、2014年、257-274頁。
・OECD(編)、環境省環境関連税制研究会(訳)『環境税の政治経済学』。
・Vikas Bajaj, “Taxing Carbon” The New York Times, February 20, 2013.
・財務省『財政健全化目標の達成に向けて』
https://www.mof.go.jp/about_mof/councils/fiscal_system_council/sub-of_fiscal_system/proceedings/material/zaiseia260310/01.pdf
・Japan Center for Climate Change Action
http://www.jccca.org/
・Environmental Economics: the Cromulent Economics Blog:
“ECON 101: Carbon Tax vs. Cap–and-Trade”
http://www.env-econ.net/carbon_tax_vs_capandtrade.html
・ Graduate School of Business UNE
https://blog.une.edu.au/gsbune/2011/07/01/the-effects-of-a-carbon-tax/
・環境省『諸外国のCO2削減のための税制度』
http://www.rinya.maff.go.jp/puresu/h15-7gatu/0627-s9.pdf
・経済産業省資源エネルギー庁『石炭政策について』
http://www.enecho.meti.go.jp/category/resources_and_fuel/coal/ 19
References