# 3. Change of Government Policies

## 1 ) Actual policies in each field

Today’s environmental problems including global environmental problems are closely related to and cannot be separated from socio economic activities. To solve such new environmental problems, the Government is required to take a different approach from that for handling conventional industrial pollution, while considering the influence on socio economic activities.

Regarding the global warming problem, as indicated in chapter 1, carbon dioxide emission that accounts for 90% of greenhouse gases, and economic growth are interrelated. Therefore, the Government has taken countermeasures that also achieve substantial results in aspects other than global warming prevention effects, and can be beneficial even if global warming does not occur. However, since the influence of global warming was found to be definite, further measures are necessary.

The "Outline for Promotion of Efforts to Prevent Global Warming" that was defined in March 2002 indicates implementation of each measure for achieving the 6% reduction as promised by transforming the situation to the reduction mode as quickly as possible by immediately implementing the measure that can be implemented at the current stage, then trying to achieve further reductions, and leading to further continuous emission reduction in the long term. The basic concepts of these measures that were presented include "co-existence of environment and economy", "step-by-step approach", "promotion of measures by integrating all the industries and levels", and "securing international linkage of global warming measures."

Relationship between GDP growth rate, carbon dioxide emission increase rate, and energy consumption increase rate

Source: "Comprehensive energy statistics [2000 version]" by Research and Institute of International Trade and Industry "Energy Demand and Supply Result (Quick Report) of 2000" by Agency of Natural Resources and Energy "1995 Calendar Year Standard GDE (GDP) Time Series Table 2000 Definite Report by Demand Item" by the Cabinet Inventory by convention bureau country (1999 version)

Breakdown of carbon dioxide emission by sector

Note 1: The inner circle indicates the proportion (number in the lower parentheses) of direct total emission of each sector and the outer circle indicates the proportion (number in the upper level) after distribution of the emission associated with power generation of the electricity company to the final demand sector according to the power consumption.

Note 2: Statistical error: The total of emission proportions does not necessarily become 100% since the value is rounded up. "Others" include the statistical error and the portion associated with consumption of lubricating oil.

Presentation: Ministry of the Environment

To achieve effective and efficient greenhouse gas emission reduction, it is important to use the concept of policy mix that combines various policy techniques organically. Above all, as one of the techniques for achieving high cost effective reduction, the economic technique of taxes and surcharges that persuade each subject to behave according to the economic rationality by granting economic incentives will be examined comprehensively, while giving consideration to the influence on the national economy and association with other countries, based on the market mechanism as the precondition.