The impact of the Tokyo emissions trading scheme on office buildings: what factor contributed to the emission reduction?

Abstract

Tokyo ETS is the first emissions 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 electricity 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 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 CO 2 in the early phase.

Energy‐Related Environmental Policy and Its Impacts on Energy Use in Asia

“…They report that the price of permits started from 10,000 yen (US$125) per CO 2 ton and fell to 4,500 yen (US$37) in 2014. Arimura and Abe (2020) find that the price of permits in Tokyo's Phase I (2010-2014) was roughly US$50 per CO 2 ton based on an econometric model, which is somewhat consistent with the report from the Tokyo government.…”

“…What are the impacts of the two regional ETSs in Japan? Arimura and Abe (2020) find that the Tokyo ETS contributed to a sizable emission reduction: it reduced GHG emissions from office buildings by approximately 6.8%. Abe and Arimura (2020) examine GHG emissions from university buildings in Tokyo and find that the ETS reduced GHG emissions relative to universities in other regions by approximately 5%.…”

EMF 35 JMIP study for Japan’s long-term climate and energy policy: scenario designs and key findings

“…It is important to recognize that transport fuels have been taxed already at a high level. At the prefectural level, the Tokyo Metropolitan Government and Saitama Prefectural Government have been implementing an emissions trading scheme (ETS) for the commercial sector (Arimura and Abe 2020 ). The Tokyo ETS was successful during Phase 1 (2010–2014).…”

An Environmental Assessment of Interlocking Concrete Blocks Mixed with Sugarcane Residues Produced in Okinawa

“…In addition, an easy cost analysis was carried out by setting the price for CO 2 reduction credits at ¥4500 (USD 59.71)/t•CO 2 [32]. In the case of BFL2 and BS scenarios, on the main island, the concrete cost decreases to around ¥2 (USD 0.02) and ¥6 (USD 0.06), respectively, in comparison to C. In the case of Yonaguni, the concrete cost decreases to around ¥5 (USD 0.05) and ¥16 (USD 0.15) for BFL2-Y and BS-Y, respectively, in comparison with C-Y.…”