A global consensus has emerged on sustainable development in the face of the climate crisis. Japan set an example in 2012 when it became the first Asian country to introduce a carbon tax policy, facilitating a case study of the relationship between carbon taxes and energy transitions. We assign Japan to be the subject and 49 other countries to be the control, using the Synthetic Control Method (SCM) to make the control more reliable. Our main conclusion, validated by robustness and placebo tests, is that Japan’s carbon tax has accelerated its energy transition. The implications for other nations are significant.

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Carbon Taxation, Energy Transition and Sustainability in Japan

  • Senmiao Yang,
  • Kangyin Dong,
  • Farhad Taghizadeh-Hesary,
  • Han Phoumin

摘要

A global consensus has emerged on sustainable development in the face of the climate crisis. Japan set an example in 2012 when it became the first Asian country to introduce a carbon tax policy, facilitating a case study of the relationship between carbon taxes and energy transitions. We assign Japan to be the subject and 49 other countries to be the control, using the Synthetic Control Method (SCM) to make the control more reliable. Our main conclusion, validated by robustness and placebo tests, is that Japan’s carbon tax has accelerated its energy transition. The implications for other nations are significant.