(INTRODUCTION)
1 Purport of the activity of the Research Panel
With the Twenty-first century near at hand, many of today's environmental problems which
we are facing are different in its characteristics from the severe industrial pollution that
we had before. Since the industrial revolution in Eighteenth century, industrialization
and the gravitation of population towards cities have caused various pollution problems all
around the world. Japan was also modernized by enhancing and industrializing policies, but
at the same time, social problems, such as Ashio copper mine, appeared. At the time of high
growth of Japanese economy after World War II, environmental problems, such as air pollution or
water pollution, were caused mainly by industrial activity sections.
To solve these problems, the Basic Law for Environmental Pollution Control were enacted, and
emission of pollutants from main generated origin was controlled thoroughly. As the result
of these countermeasures taken by the whole country, we could escape from passing critical
situations of industrial pollution problems.
However, since 1975, by the effect of progress of urbanization, diversification of life styles of
the people or others, normal social and economic activity and behaviors accompanied
by daily life has become the generating cause of environmental problems. The social
system of mass production, mass consumption and mass disposal brought by economic
development of Twentieth century and internationalization of human economic
activities caused global environmental problems beyond the boundary and generations, such
as global warming or conserving bio diversity, and became the centering subjects of
new environmental problems.
Unlike industrial pollution, these problems are difficult to be seen directly, and
we tend to have less risk consciousness. But they are the risk which can threaten the
foundation of human life.
Under these circumstances, international society began to take necessary measures. As for
global warming, Intergovernmental Panel on Climate Change (IPCC) was established in
1988, and reviewing work of global warming from the point of view of science, effects and
measures began. In 1995, the secondary evaluation report was prepared. According to the most
standard prediction simulation in the report, it is estimated that if carbon dioxide emission
in 2100 becomes a little less than three times of that in 1990, the average air temperature of
the whole world in 2100 will increase by 2ºC compared with that of 1990 and the water-level
of sea Surface will increase by about 50 centimeters.
In Japan, backed by the society of mass production, mass consumption and mass disposal, it
is backward in improvement of urban and domestic pollution, such as air pollution
by automobile emission or water pollution by sewage, caused by normal business activities or
daily life, and the increase of the amount of the wastes is becoming the big environmental
problem.
It became limited to solve these environmental problems caused by accumulation of daily
environmental loads only by traditional regulatory measures. Not only the environmental
measures in a company and countermeasures in industry, but also reviewing of the
traditional life style of ours and social / economic system is required.
To do this, it should be based to change the way of thinking that environment
is free property which we can use for free. We should accept the way of thinking that our
daily socioeconomic activities are formed by the benefit of environment and that
we should pay the cost for its preservation, or the rental fee of the earth properly.
On this kind of basic recognition, The Research Panel was established in August,
1994. In The Research Panel, as a measure to construct the society which
enables continuous development of less load to the environment, we have paid
attention to the utilization of economic instruments, such as environmental taxes,
and have conducted wide range of researches, centering on the environmental preservation
effectiveness of economic instrument and the effects on Japanese economy.
2 The results of the study of The Research Panel until now
This Research Panel held meeting twenty three times since the establishment in August,
1994, and has conducted researches mainly on environmental taxes and
charges. During that time, we have held hearings of opinions relating to economic
instruments from the industry, local public bodies, consumers' organization and
NGO to arrange and announce the opinions from every point of view. In November, 1995,
we held a symposium, ''Thinking about Global Warming, the role of economic instruments,"
and conducted activities, such as keynote speeches by responsible official
of the Bureau of Environment of OECD or the industry, or panel discussion
of the people from every field, to deepen the understandings of the people about the
significance of economic instruments and subjects.
In June, 1996, "Regarding the Utilization of Economic Instruments such as Taxation
and Charges in Environmental Policies " was prepared as an initial report. In this report, [1]
basic way of thinking relating to economic instrument was considered as well
as the effectiveness and effects of economic instruments was reviewed, with pointing out the
examples in OECD, and [2] as for environmental taxes and charges which are utilized
most frequently among the economic instruments, the way of thinking was arranged along
with the arguing points indicated in the intermediate report (April, 1994)
of the Environmental Taxes Research Panel, which is the predecessor of this Research Panel.
3 Purport of preparation of this last report
This report is focused on the utilization of carbon tax as a countermeasure against global
warming so that concrete images can be gained for new political methods of taxes and
charges.
As for the countermeasures against global warming, among all kinds of those against
environmental problems, satisfactory effectiveness cannot be expected only by the
traditional regulatory measures. It is considered to have effectiveness to introduce the
economic instruments which is supposed to give incentives of countermeasures in
wide range of activities. It is true that it remains uncertainty of the effects and casual
sequences of global warming problems, and we tend to be unaware of the long-term effects of normal social and economic activities on the environment. However,
once the effects occur, it can cause tremendous and wide range of damages, and
in the latest review of scientific opinions by IPCC, it has already been
confirmed that the global warming has begun.
The global warming is the subject which we have to tackle today, and the explanation that
it has nothing to do with us does not make an excuse any more. It is required that emission
control of greenhouse gases, such as carbon dioxide, should be proceeded actively with
heightening the possibility of implementation of countermeasures.
In December, 1997, COP3 to the "United Nations Framework Convention on Climate
Change" will be held in the ancient capital of Kyoto.
The existing rule of the above agreement that carbon dioxide emission in the developed
countries should be stabilized at the level of 1990 in 2000 is not sufficient, and it is
expected to adopt the protocol and others which provide the countermeasures the
developed countries should take after 2000 in this conference.
Therefore it will be the important conference that it is not too much to say that it can
decide the future of the human being. We, the host country of this conference, have to
welcome this conference, with strengthening much more to tackle with the measures to
prevent global warming, and through taking the active leadership, we have to make effort
in having the fruitful conference.
Based on the above situation, we have decided to make concrete proposition in the Research
Panel about the utilization of economic instruments, such as environmental taxes, with
especially considering the prevention of global warming and taking account into the
results of the research up to now.
In this report, in the first place, the latest situation and effects of environmental taxes in
foreign countries, mainly aimed at prevention of global warming are introduced.
Then, concrete designing and effects of carbon tax or carbon / energy tax is considered, and
additionally concrete option ideas of introducible carbon tax is proposed.
Rights and wrongs of introduction of environmental taxes, especially for those to prevent
global warming is arousing interests from various fields, full-scale discussion
among people concerned of wide range of fields on the common basis has not conducted yet.
We hope that this report will be utilized as a basis for discussion and that the
understanding of the people about the economic instruments will be deepened.
