Title: Evaluation of GHG discharge reduction policy by multi-regional CGE in Japan

Authors: Masahiro Abe; Yasuhisa Hayashiyama (deceased)

Addresses: Graduate School of Economics and Management, Tohoku University, Kawauchi, 27-1, Aoba-ku, Sendai, Miyagi 980-8576, Japan ' Formerly of: Graduate School of Economics and Management, Tohoku University, Miyagi 980-8576, Japan

Abstract: To implement Japan's obligation of greenhouse gases (GHG) discharge reduction in the Kyoto protocol, carbon taxes or other environmental policies need to be introduced. Then, there is a lot of existing research analysing the economic impact of those policies. Most of these studies, however, pay attention to only the entire impact to the Japanese economy and there is little literature analysing it by region. The main object of our research is to construct a Japanese multi-regional computable general equilibrium (MRCGE) model and clarify the cost and benefit of GHG tax policy quantitatively by region and by industrial sector. The result of this study shows clearly the significant difference of the economic impact of GHG tax among regions and industries.

Keywords: multi-regional CGE model; computable general equilibrium; interregional input-output table; greenhouse gases; GHG emissions; GHG reduction policy; policy evaluation; carbon tax; Japan; cost-benefit analysis; economic impact; regional impact; regions.

DOI: 10.1504/IJCEE.2013.058491

International Journal of Computational Economics and Econometrics, 2013 Vol.3 No.3/4, pp.103 - 123

Accepted: 23 Apr 2013
Published online: 31 Dec 2013 *

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