By Tadayoshi Terao, Kenji Otsuka
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This publication examines the problems of environmental coverage formation and implementation associated with financial improvement, by means of reviewing the japanese stories and the examples of alternative Asian international locations. This unearths components, that could at the same time impression effectiveness in environmental coverage, of dynamism betwen environmental coverage and social swap in a family, local and worldwide context.
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Extra info for Development of Environmental Policy in Japan and Asian Countries
MITI received applications and played a gate-keeping role for access to low-interest loans from the Japan Development Bank (JDB), which provides the major portion of low-interest loans for large enterprises, and, indeed, MITI had a substantial role in deciding the allocation of the loans. Although most of the prefectural and municipal governments prepared individual low-interest loans too, they were for small and medium-sized enterprises and self-employed individuals with limited budgets. Furthermore, at that time, MITI was issuing guidance on pollution prevention to each industry and providing assistance for development of pollution prevention technology.
A pollution tax or surcharge on pollution emission can induce pollution prevention investment by private enterprises, similar to preferential treatments, by increasing the cost to the enterprises of emitting pollution into the environment. According to microeconomic theory, surcharges on pollution emission and subsidies for pollution prevention should, at least in the short run, have the same effect as incentives to private enterprises for pollution prevention. However, subsidies are not a desirable method from the viewpoint of ‘the polluter pays principle’ (PPP).
10 Pollution prevention investment by oil refineries Source: Petroleum Association of Japan, Sekiyu Renmei Shiryo. 11 Fuel use of thermal power plants of nine major electric companies (calorific power base) Sources: Federation of Electric Power Companies of Japan, Denkijigyo Binran; Agency of Natural Resources and Energy, Sogo Enerugi Tokei, various issues. 11 is the amount of each fuel used at thermal power plants of the nine major electric power companies from 1962, when crude-oil combustion started at power plants.