Carbon dioxide emission forecast in Japan by AIM/end-use model

An end-use energy demand model has been developed to evaluate policy options to reduce carbon dioxide emissions. The model can evaluate relations between carbon dioxide emissions and energy consumption technologies. It can also analyze effects of introducing various reduction policies, such as imposing carbon taxes and granting subsidies. Under various policy options, carbon dioxide emissions were projected through 2010 in Japan. It is found that carbon dioxide emissions could be reduced by 3% to the 1990 level if a carbon tax of 30,000 yen per carbon ton would be introduced. And, if the revenues from the carbon tax would be recycled as subsidies, the tax rate would be reduced to 3,000 yen per carbon ton.