Environmental Fiscal Reformfor Environmental,
Land Infrastructure
and Transport Problems inJapan
Fumiaki TOUDOU
Graduate School of Modern Society and Culture,
Niigata University.
and Niigata Citizen’s Environmental Transport
Research Society.

8th GCET Munich 2007

Niigata University
Fumiaki TOUDOU

1Environment and Transport• 2 essential factors in relation between
environment and transport– It’s environmental loads– It’s social acceptability→Climate Change do not have to (or shouldnot) be the only reason for demanding
sustainable transport.
8th GCET Munich 2007

Niigata University
Fumiaki TOUDOU

2NIIGATA is still not famous.

8th GCET Munich 2007

Niigata University
Fumiaki TOUDOU

3

Climate Change is not the only reason for
the need to reform environmental policies

8th GCET Munich 2007

Niigata University
Fumiaki TOUDOU

4

Eco-Efficiency and Total
Environmental Resource Inputs• “（Inverse）Eco-Efficiency” and “Total
Environmental Resource Inputs”：– Their time-series features（refer to Toudou
2006 and 2008 ）（Phenomenon, already stated in：Stanley
Jevons’ “Coal Question” 1865）• Improvements in Efficiency do not mean
reduced resource inputs, inter-related but
can be adversely related.
8th GCET Munich 2007Niigata University
Fumiaki TOUDOU

5

In Toudou(2006)
8th GCET Munich 2007

Niigata University
Fumiaki TOUDOU

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Environmentally Sustainable
Transport Policies• ＥＳＴ:Environmentally Sustainable
Transport (OECD)• It’s adaptation in wider (more general)context• →Systematic Understanding• →Systematic Measures against problems

8th GCET Munich 2007

Niigata University
Fumiaki TOUDOU

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Automobile related taxes andthe Environmental Tax• Automobiles are widely taxed→Table 2.2• Fuel taxes have been existed on the sametax bases, that are planned in proposed
Environmental Taxes in Japan.
» Refer to F.Toudou’s 2006 paper. (forthcoming inCIET, 2008)

8th GCET Munich 2007

Niigata University
Fumiaki TOUDOU

8Table 2-2 Automobile-related Taxes
Name of Tax

National or Local (Its compositions)

SPTRI or notPurchase

Automobile
Acquisition Tax

30% : prefectures and designated cities
70% : municipalities

Yes

Holding

Automobile WeightTax

National (1/3 Automobile Weight Transferred

Mostly (85% of the revenue)

Stage

Running

Tax: municipalities)

Automobile Tax

Prefectures

No

Light Automobile
Tax

Municipalities

NoVolatile Oil Tax

NationalYes

Local Road
Transferred Tax

58% prefectures and designated cities, 42%municipalities

Yes

Diesel Fuel Delivery
Tax

prefectures and designated cities

Yes

Petroleum Gas TaxNational(50% Petroleum Gas Transferred Tax

Yes→prefectures and designated cities)
Petroleum and coaltax (renamed 2003)*National(*Not only taxed to automobile users)

No(Used for Special Account for Coal, Oiland Energy Demand Structure
Advancement) including the promotion ofNuclear Power Plants.

Source: Road Economy Research Institute, Ministry of Finance, and Agency for Natural Resources and Energy.

8th GCET Munich 2007

Niigata University
Fumiaki TOUDOU

9Table 2-3 Automobile-related Taxes’ RevenueNamePurchase
HoldingRunning

Revenue FY 2004
Billion yen

Automobile Acquisition Tax

457.2

Automobile Weight Tax

1126.5

Automobile Tax

1796.9Light Automobile Tax

144.4

Subtotal

3067.8Volatile Oil Tax

2836.2

Local Road Transferred Tax

303.5

Diesel Fuel Delivery Tax

1075.028.0

Petroleum Gas Tax

4242.7

Subtotal

7767.7Total
8th GCET Munich 2007

Niigata University
Fumiaki TOUDOU

10Improvements necessary to makeexisting automobile related taxes“Environmental”(1)• Change in the ratio of Possession taxes toFuel taxes.
→Higher ratio in fuel taxation
Fig 2-5 FY 2004
composition of automobile
related taxes

8th GCET Munich 2007

Niigata University
Fumiaki TOUDOU

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Figure 2-6 International Comparison of annual
payment for a car user

Source: Annual Statistics of Road, 2006. *Calculated in annual payment in yen, model case.

8th GCET Munich 2007

Niigata University
Fumiaki TOUDOU

12

Improvements necessary to makeexisting automobile related taxes“Environmental” (2)• Straightening of miss-leading incentive schemesof the past tax “reform for Greening” of theautomobile tax (from 2002).
• → tax system that permits higher rank of tax
exemption to larger and inefficient automobiles,
based on the “relative efficiency improvements”.
←Again, the problem of “Efficiency”.

8th GCET Munich 2007

Niigata University
Fumiaki TOUDOU

13

Improvements necessary to makeexisting automobile related taxes“Environmental” (3)• The SPTRI problem– Ear-Marking in the name of the “Special Purpose Taxes
for Road Improvements” solely spent to the road
construction and improvements.

• Should “Tax payer” be “the Beneficiaries”?
– Text book idea of “External Diseconomy” have littlepower on political systems

8th GCET Munich 2007

Niigata UniversityFumiaki TOUDOU

14N ationaland LocalR oad Investm ent (in bil.yen)
10000
B illion Y en

8000

N -SP TR I
N -Total
L-SP TR I
L-TotalG ov.Fin.Invest.

6000
4000
2000

03

2098

1993

1988

1983

1978

1973

1968

1963

1919580

FiscalYear
Source: Road Economy Research Institute.

8th GCET Munich 2007

Niigata University
Fumiaki TOUDOU

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Table 2-4R. Road Investment andits Ratio of SPTRI In billion yen
FYNational
SPTRI

Gov. Fin.
Invest.

Local
GeneralTotal

SPTRIGeneral

Total

RatioofSPTRITotal

1996

3233.3490.83724.1

2568.44937.47505.82985.214215.1

41%

1997

3430.2197.23627.42448.44712.97161.32867.3

13656

43%

1998

3415.31588.15003.42349.65487.77837.32565.815406.5

37%

1999

3445.2984.1

4429.32307.84578.76886.52184.313500.1

43%

2000

3515.8

769.2

4285

2264.74265.76530.4

1952.912768.3

45%

2001

3617.2667.64284.82237.13920.46157.51851.912294.2

48%

2002

3607.4313.53920.92178.53595.55774

1651.211346.1

51%

2003

3476.2119.33595.52217.62886.45104

1770.110469.6

54%

2004

3494.4165.3

3659.72265.72901.95167.6

1567.7

10395

55%

2005

3623.553.4

3676.92219.72674.44894.1

1350

9921

59%

85399.8

12195.4

97595.2

58052.2

98841.8

15689464237.9318727.1

45%

Total

8th GCET Munich 2007

Niigata University
Fumiaki TOUDOU

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Automobile Related Taxes andNational Road Construction
Expenditure• The structure of National Road
Construction Expenditure• Used to subsidize the use of automobiles,
in total.

8th GCET Munich 2007

Niigata University
Fumiaki TOUDOU

17The outcomes of Road
Investment

FY1990

Average
Travel Speed

Registered
Numbers ofGasoline
Automobiles

Consumption ofGasoline

35.5 km/h

33,099,715

46,139,071 kl

FY200535.3km/h

Change-%0.56

42,550,710

63,222,291 kl+28.55 %+37.03 ％Road Investment
in total FY 1990～2005

204 Trillion Yen(203,715.4
Billion Yen)

Source: from Takahashi( 2007) , MLIT, Oil Federation

8th GCET Munich 2007

Niigata University
Fumiaki TOUDOU

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Funding Public Transport byAutomobile Related Tax Revenues• Tendencies in Governmental Expenditurein the are of Land Infrastructure andTransport →Law on the invigoration andrevitalization of local public transport(enforced October,2007)• Changing regional structure of transport
behavior– Necessities in public funding for regional publictransports.
8th GCET Munich 2007

Niigata University
Fumiaki TOUDOU

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Photo: Bus Terminal at the main station of Niigata

8th GCET Munich 2007

Niigata University
Fumiaki TOUDOU

20

Regional Initiative for Sustainable
Transport: Example• Niigata-city (from 2007, an ordinancedesignated city)– Transport Structure: Reliance on Automobile
usage, Atrophy of public transport, andincrease in environmental load

8th GCET Munich 2007

Niigata University
Fumiaki TOUDOU

21

Regional public transport activation
The problem of social acceptability of the transport
structure: Less means of transport to non-automobile
user
Transport sector and land development are the major
obstacles to reduce its environmental loads• From negative feedbacks to positive feedbacks• Covering up Japanese Environmental Policies’
weak points.
– Individual Efficiency and Overall Fallacy

8th GCET Munich 2007

Niigata University
Fumiaki TOUDOU

22

Information is necessary to understand, improve
the public transport network. The map of public
transportation Niigata City, made by Niigata
Environmental Transport Research Society: NGO.
8th GCET Munich 2007

Niigata University
Fumiaki TOUDOU

23

Summary: to reach sustainabletransport• “Environmentally Related Taxes” alreadyexisted, but the usage is the problem.
• →Especially, need to reform the structureof Automobile related taxes• To activate regional public transport:– Regional citizen’s participation to the processof design of public transport– and larger funding system using the tax
revenue for public transport is necessary
8th GCET Munich 2007

Niigata University
Fumiaki TOUDOU

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