Global Warming And Externalities: Japan

ECONOMICS ESSAY

Meahak Sippy

Country: Japan

        Global Warming is the increase of Earth's average surface temperature due to effect of greenhouse gases, such as carbon dioxide emissions from burning fossil fuels or from deforestation, which trap heat that would otherwise escape from Earth. This is a type of greenhouse effect.

           Global warming may threaten these needs with increased temperatures, sea level rise, changes in precipitation, and more frequent or intense extreme events. The risks of climate-sensitive diseases and health impacts can be high in poor countries that have little capacity to prevent and treat illness. 

                 Fossil fuels are the largest greenhouse gas emitters in the world, contributing 3/4 of all carbon, methane and other greenhouse gas emissions. Burning coal, petroleum and other fossil fuels at extremely high temperatures (combustion) is the primary means by which electricity is produced, but also leads to heavy concentrations of pollutants in our air and water. Human activity since the Industrial Revolution and overproduction and consumption of common access resources has increased the amount of greenhouse gases in the atmosphere. Temperatures have been rising over the same period. In fact, the 5th IPCC Report has stated that scientists are 95% certain that humans are the "dominant cause" of global warming since the 1950s.

            Japan ranked as the second largest net importer of fossil fuels in the world in 2012, trailing only China. This follows the Fukushima nuclear disaster in 2011, after which Japan suspended operations at all of its nuclear power plants. The loss of nuclear capacity resulted in a shift in Japan's energy mix toward oil and natural gas. Japan is now the third largest oil consumer and importer in the world behind the United States and China. Furthermore, it ranks as the world's largest importer of liquefied natural gas (LNG) and second largest importer of coal behind China. Japan has limited domestic energy resources, and the country meets less than 15% of its own total primary energy use from domestic sources.

              

              A negative externality is a spillover of an economic transaction that negatively impacts a party that is not directly involved in the transaction. The first party bears no costs for their impact on society while the second party receives no benefits from being impacted. This occurs when marginal social cost is greater than marginal private cost (MSC > MPC).

            The Kyoto Protocol is an international treaty that commits State Parties to reduce greenhouse gases emissions, based on the premise that (a) global warming exists and (b) man-made CO2emissions have caused it. The Kyoto Protocol was adopted in Kyoto, Japan, on 11 December 1997 and entered into force on 16 February 2005.

A number of emissions trading schemes (ETS) have been, or are planned to be, implemented. Japan: emissions trading in Tokyo started in 2010. This scheme is run by the Tokyo Metropolitan Government.

            A Green Investment Scheme (GIS) refers to a plan for achieving environmental benefits from trading surplus allowances (AAUs) under the Kyoto Protocol.

Between 2001, which was the first year Clean Development Mechanism (CDM) projects could be registered, and 2012, the end of the first Kyoto commitment period, the CDM is expected to produce some 1.5 billion tons of carbon dioxide equivalent (CO2e) in emission reductions. Most of these reductions are through renewable energy commercialisation, energy efficiency, and fuel switching. The Protocol also reaffirms the principle that developed countries have to pay billions of dollars, and supply technology to other countries for climate-related studies and projects.

Japan commits to climate change action. During the World Economic Forum on Saturday, Japanese Prime Minister Yasuo Fukuda said that Japan would prioritize climate change, by reducing her own carbon emissions while helping other countries reduce theirs as well. To start, Japan pledged US$10 billion in donations or loans to help developing countries that want to use clean energy. An additional US$30 billion would also be used to research better climate change technologies. Mr. Fukuda said, “The world as a whole must strive to improve energy efficiency until revolutionary technology which will dramatically reduce greenhouse gas becomes available.” We salute Japan for your bold world leadership and assistance to other countries. It is a problem faced by all the countries and the exclusion of even one of the countries from the agreement can result in aggravating the problem of global warming.

Biblography:
http://www.suprememastertv.com/save-our-planet/?wr_id=38&page=32
http://www.world-nuclear.org/info/Energy-and-Environment/Policy-Responses-to-Climate-Change/

http://oilprice.com/Energy/Gas-Prices/Why-Fuel-Subsidies-are-Bad-for-Everyone.html