March 2017
ABSTRACT
Climate
change
is
a
global
challenge
that
must
be
addressed
at
the
international
level.
In
December
2015,
the
Paris
Agreement
was
adopted
at
the
21st
session
of
the
Conference
of
the
Parties
to
the
United
Nations
Framework
Convention
on
Climate
Change
(COP21)
held
in
Paris.
The
Paris
agreement
is
aimed
at
keeping
global
temperature
increases
below
2
°C.
Toward
this
goal,
the
Japanese
government
plans
to
reduce
greenhouse
gas
emissions
by
26%
by
fiscal
year
2030
compared
with
fiscal
year
2013.
In
this
study,
we
evaluate
the
feasibility
of
Japan’s
energy
policy
for
reducing
CO2
emissions.
We
construct
a
macroeconometric
model
linked
to
an
energy
model
to
show
the
optimal
future
energy
policy
for
Japan
by
applying
optimal
control
to
the
social
welfare
function.
Keywords: Carbon
tax,
Energy
model,
Macroeconometric
model,
Optimal
control
JEL
classification: C30,
P28,
Q43,
Q48
PDF available at http://hdl.handle.net/2344/00048862
Please note that discussion papers are works in various stages of progress and most have not been edited and proofread and may contain errors of fact or judgment. Revised versions of these papers may subsequently appear in more formal publication series. The views expressed in this publication are those of the author(s). The IDE does not guarantee the accuracy of the data included and accepts no responsibility for any consequences arising from its use.