Incentive-based Policies for Long-term Climate Change
ESRI Studies Series on the Environment
Edited by Carlo Carraro and Christian Egenhofer
The world at the beginning of the twenty-ﬁrst century must place the highest priority on constructing a sustainable socioeconomic system that can cope with the rapid ageing of populations in developed countries and with the limited environmental resources available in those countries. At ﬁrst glance, the ageing problem and the environment problem may seem to be quite separate issues. However, they share a common feature: they both deal with intergenerational problems. The essence of the ageing problem is how to ﬁnd effective ways for a smaller, younger generation to support a larger, ageing generation. The crux of the environmental problem is to ﬁnd a feasible way to leave environmental resources to future generations. Moreover, in terms of consumption, slower population growth may slow consumption and help environmental problems. On the other hand, a rapidly ageing society may use more energy-intensive technology to compensate for the inevitable labour shortage, and deteriorate the natural environment by doing so. Today, these concerns are highly applicable in Japan. The pressure created by the rapid ageing of the Japanese population is becoming acute; Japan must construct a sustainable society that does not create intergenerational inequity or deteriorate the public welfare. At the same time, Japan cannot deplete its environmental resources and energy, which would leave future generations with an unbearably heavy burden. The government of Japan has recognized the vital importance of both problems. To explore and implement solutions for this difﬁcult task, in April 2000 former Prime Minister Keizo Obuchi launched several...