JAPAN BUSINESS LEADER WANTS CARBON TAX

In Japan, the world’s 2nd largest economy, what westerners call a “carbon tax” is called an “environment tax.” The only thing inscrutable about that is why everybody else uses the wrong name for it.

But given the fact that US politicians argue both that a tax is the most effective weapon against emissions and politically unachievable, questions about the way it is named are secondary.

Japan Should Levy Carbon Tax For Emissions, Business Lobby Says
Shigeru Sato, October 17, 2007 (Bloomberg)

WHO
Masamitsu Sakurai, head, the Keizai Doyukai (Japanese Association of Corporate Executives) & chairman, Ricoh Co.; Petroleum Association of Japan

Where the emissions come from in Japan, 1. (click to enlarge)

WHAT
Sakurai called for a carbon tax in Japan to help control greenhouse gas (GHG) emissions. In response, the Petroleum Association said a carbon tax is an unnecessary burden on the economy and the government should ask voluntary measures of businesses.

WHEN
A carbon tax was originally proposed by the Keizai Doyukai in January 2006.

WHERE
The tax would apply to fossil fuels in a effort to push the country toward its Kyoto Protocol goals.

WHY
- The carbon tax was proposed by Keizai Doyukai as part of a broad tax reform.
- Nippon Oil Co. and other Japanese refiners said the tax would curb growth.
- The country’s environment ministry would levy the tax on petroleum products: 2400 yen ($21)/ton of emissions for homes using kerosene and liquefied petroleum gas for cooking and heating. Factories would be taxed for coal, heavy fuel oil and natural gas.
- Half of the Japanese gas pump price (currently 145 yen/liter) is tax. This includes an oil and gas taxation, a consumption taxation and a gasoline taxation.

Where emissions come from in Japan, 2. (click to enlarge)

QUOTES
- Sakurai, for Keizai Doyukai: ``The country needs such an environment tax…We need higher rates of the carbon tax to be imposed on goods and services.''
- Statement, Petroleum Association of Japan: ``A carbon tax would be an unnecessary burden on Japan's economy…The government needs to find measures that prompt private companies to voluntarily step up efforts to reduce emission volumes.''