We will develop a model for calculating overall economic activities in Japan to estimate the amount of energy consumption and greenhouse gas emissions and develop technological, economic and legislative strategies and scenarios for realizing a comfortable and affluent low carbon society.
Last year, the Japanese government submitted its mid-term target for reducing greenhouse gas emissions to the secretariat of the United Nations Framework Convention on Climate Change. Its target of reducing greenhouse gas emissions by 25% from 1990 levels by 2020 met with wide acclaim from the international community. However, some experts expressed concern over the potentially serious impact of such major reductions on Japan's economy. Indeed, when the taskforce established within the Cabinet Office to evaluate mid-term target reductions used computable general equilibrium models to evaluate the effect of such reductions, each model showed a significant negative impact on Japan's economy.
At LCS, on the other hand, we have attempted to develop strategies for realizing mid-term objectives while also enhancing the quality of daily life. Although we used general equilibrium models similar to those of the taskforce to analyze mid-term objectives, we conducted our research from a different perspective. As a result, we have been able to determine measures and conditions for achieving mid-term objectives while enhancing household utility.