Abstract
Abstract To analyze the ripple effects of CO2 emissions from the introduction of renewable energy power plants, this study developed input–output tables for analysis of next-generation energy systems (IONGES). The results revealed that the environmental benefits obtained from investing in power plants of the same capacity vary significantly depending on the type of renewable energy. Using the IONGES, under assumptions of three carbon taxation methods (upstream, midstream, and downstream), we calculated the taxable CO2 emissions induced when producing each good or service and estimated the carbon tax burden associated with the final demand. We found that, in the upstream method, the taxation effects of one unit of carbon tax is concentrated in energy goods such as coal products and petroleum basic, while the effects are relatively dispersed in the downstream taxation method. If renewable energy is added to the government target level in 2030, taxable CO2 emissions will decrease by 12–13.3%. Compared with the upstream taxation method, in the midstream and downstream methods, the CO2 emissions induced by each final demand are distributed more evenly across various goods and services. Compared to the downstream taxation method, upstream taxation leads to higher CO2 emissions from exports, but lower CO2 emissions from household consumption. This is because energy-intensive industries such as machinery have high export ratios. We analyzed which expenditure categories contribute to the carbon tax burden associated with household consumption. In the case of upstream taxation, households mainly focus on reducing electricity consumption; in the case of downstream taxation, households reduce consumption of various energy-intensive goods and services.
Highlights
IntroductionThe Council of Japan’s Ministry of the Environment is currently discussing a carbon tax scheme for 2050
To quantitatively measure how the introduction of a carbon tax affects industries under the introduction of renewable energy and how different carbon taxation methods affect producers and consumers, we developed an input–output table for analysis of nextgeneration energy systems (IONGES) for 2011.1 This table follows a 2005 study of IONGES (Nakano et al 2017) and our previously published inter-regional IONGES study (Nakano et al 2018)
The purpose of this study is to describe the 2011 IONGES table and use it to analyze the ripple effects of CO2 emissions and savings from the construction and operation of renewable-energy power plants
Summary
The Council of Japan’s Ministry of the Environment is currently discussing a carbon tax scheme for 2050. To quantitatively measure how the introduction of a carbon tax affects industries under the introduction of renewable energy and how different carbon taxation methods affect producers and consumers, we developed an input–output table for analysis of nextgeneration energy systems (IONGES) for 2011.1 This table follows a 2005 study of IONGES (Nakano et al 2017) and our previously published inter-regional IONGES study (Nakano et al 2018). The purpose of this study is to describe the 2011 IONGES table and use it to analyze the ripple effects of CO2 emissions and savings from the construction and operation of renewable-energy power plants These results measure the potential tax reduction from each power generation technology when a carbon tax is introduced. Detailed quantitative results obtained from the input–output analysis can provide specific ways to implement carbon pricing
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