We will provide quantitative numerical projections on the long-term economical effects of various low carbon measures. We will propose ways to achieve low carbon without having to sacrifice affluence and comfort. We will also consider the feasibility of popularizing next-generation vehicles and the potential effect of this on reducing greenhouse gas emissions.
The objective of this research is to propose policy designs for achieving a vigorous economy and comfortable lifestyle by transitioning to a low carbon society. To do this, we will take into account bounded rationality to propose strategies to promote the spread of low carbon devices (energy-saving electrical appliances and energy generating devices) without reducing household utility. We will then make quantitative evaluations of economic effects using our general equilibrium model.
In order to reduce carbon emissions in the transportation sector, the Basic Energy Plan calls for the promotion of eco-friendly vehicles.
One of the policies enacted towards this goal was to provide subsidies and tax breaks when purchasing eco-friendly cars. Introduced in 2009, this policy helped to boost the sales of next-generation vehicles and state-of-the-art eco-friendly vehicles. Based on the number of newly registered private cars (standard sized, compact and light four-wheelers) in 2009 and available data on each model, we created a database for developing a model that showed consumer selection criteria in purchasing automobiles. Using this model, we conducted simulations to estimate the effects of eco-car subsidies in reducing CO2 emissions and demonstrate their effectiveness in mitigating global warming. We also designed a system in which automobile taxes were reduced in proportion to fuel efficiency and estimated its effectiveness in reducing CO2 emissions.