・表題：「Do Regional Emissions Trading Schemes lead to Carbon Leakage within Firms? A Case of Tokyo/Saitama Emissions Trading Schemes in Japan」
Do Regional Emissions Trading Schemes lead to Carbon Leakage within Firms? : A Case of Tokyo/Saitama Emissions Trading Schemes in Japan
Taisuke Sadayuki, & Toshi H. Arimura
Carbon pricing such as carbon tax or emission trading system (ETS) has gained attention in many countries as they are considered to promote energy efficiency in targeted sectors in an efficient way. However, in many countries, governments face oppositions from stakeholders. In Japan, though the regional governments of Tokyo and Saitama adopted regional ETSs in 2010 and 2011, respectively, the national government has not adopted ETS yet. This is because the Japanese energy-intensive industrial sectors have opposed to the ETS due to the concern on the competitiveness issue and on the associated carbon leakage. Using facility level panel data taken in Japan, we estimated the impact of Tokyo/Saitama ETS on carbon leakage by examining how firms who had facilities under the ETS regulation alter carbon emissions from unregulated facilities outside of Tokyo and Saitama after the ETS was introduced, and we found no evidence of carbon leakage. On the contrary, we even found a positive spillover effect of the ETS (negative carbon leakage?) where firms who had facilities under the ETS reduced carbon emissions not only from these regulated facilities but also from unregulated facilities outside of Tokyo or Saitama. This finding may provide an evidence of the impact of ETS in bridging the energy efficiency gap in facilities within firms. We also find that ETS reduces carbon emissions more in manufacturing sectors than in service sectors despite the "dried towel argument" advocated by the busines federation.