OECD Environment Working Papers

ISSN :
1997-0900 (online)
DOI :
10.1787/19970900
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This series is designed to make available to a wider readership selected studies on environmental issues prepared for use within the OECD. Authorship is usually collective, but principal authors are named. The papers are generally available only in their original language English or French with a summary in the other if available.
 

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Author(s):
Ivana Capozza1
Author Affiliations
  • 1: OECD, France

Publication Date
18 Mar 2011
Bibliographic information
No.:
28
Pages
42
DOI
10.1787/5kggc0rpw55l-en

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A decade of sluggish economic growth, concluding with the sharpest recession since the Second World War, has underlined the need for Japan to develop a new growth model. Such a model should restore public finances and long-term growth while preserving environmental quality and ensuring a sustainable use of natural resources. This paper assesses Japan’s progress in moving towards such an environmentally friendly growth pattern. It summarises Japan’s achievements and challenges in decoupling environmental pressures from economic performance. It analyses the use of market-based instruments, such as environmentally related taxes and charges and emissions trading schemes, to meet environmental and economic objectives, as well as steps taken to remove environmentally harmful subsidies. The level of integration of environmental concerns in Japan’s response to the economic crisis and in its long-term growth strategy is also analysed, particularly the policy mix used to take advantage of the growth and jobs opportunities arising from eco-innovation and the environmental goods and services sector. This Working Paper relates to the 2010 OECD Environmental Performance Review of Japan (www.oecd.org/env/countryreviews/japan).
Keywords:
voluntary agreements, climate change, economic instruments for environmental policy, eco-innovation, performance targets, green growth strategy, Japan, environmentally harmful subsidies, environmentally-related taxes, pollution abatement and control expenditure
JEL Classification:
  • H23: Public Economics / Taxation, Subsidies, and Revenue / Externalities; Redistributive Effects; Environmental Taxes and Subsidies
  • O33: Economic Development, Technological Change, and Growth / Technological Change; Research and Development; Intellectual Property Rights / Technological Change: Choices and Consequences; Diffusion Processes
  • O38: Economic Development, Technological Change, and Growth / Technological Change; Research and Development; Intellectual Property Rights / Government Policy
  • O44: Economic Development, Technological Change, and Growth / Economic Growth and Aggregate Productivity / Environment and Growth
  • Q52: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Pollution Control Adoption Costs; Distributional Effects; Employment Effects
  • Q54: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Climate; Natural Disasters; Global Warming
  • Q55: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Technological Innovation
  • Q58: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Government Policy