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Home > Media Reviews > News Review Last Updated: 10:37 06/23/2008
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News Review #451: June 23, 2008

Japan to Promote Solar Power for Households: Nikkei


Reviewed by Takahiro MIYAO


Article:
Japan to Promote Solar Power for Households: Nikkei
Reuters (6/22/2008)
http://www.reuters.com/article/environmentNews/
idUST20585820080622


Comments:

It is reported in the Reuters article linked above that, according to Nikkei Newspaper, the Japanese government will soon announce an incentive program, such as subsidies and tax breaks, to promote the household use of solar power systems, effective next year. This kind of program will contribute to the solution of high energy prices and worsening environmental problems, and is really long overdue in Japan.

We should note that policymakers as well as the general public tend to think of something like an "environment tax" as most important in solving the energy-environment problems. However, it is not so widely recognized that subsidies and tax cuts are equally important in the sense that encouraging the use of efficient and non-polluting use of energy amounts to the same thing as discouraging its inefficient and polluting use by introducing taxes and regulations. Either way, we would be "pricing" the externalities which result from energy consumption with negative effects on the environment.

It is widely known that Japan is highly regarded as among the most efficient and environment friendly countries as far as industrial activities are concerned. It is about time for Japan to establish a similar reputation with regard to household activities.

Acknowledgment:
This review is adopted from the following blog (with its Japanese translation):
http://glocom.blog59.fc2.com/blog-date-20080623.html

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