The Mitsui & Co. Environment Fund

Introduction to Grant Projects

Center for Environment and Trade Research, Sophia University Director, Toshihide Arimura

The impact of domestic emission trading on competitiveness and international climate change negotiation: a law and economics approach

Research grant

Project Description

In this research, we first turn our attention to the introduction of a domestic (Japan) emission trading scheme, analyzing the effects of carbon pricing on the industrial sector. We quantify the linkage issue* and propose concrete policy measures to (a) stem a decline in international competitiveness and (b) prevent leakage. Second, we analyze what impact an imposition of border tax adjustments to prevent leakage would have on the global warming countermeasures (policies) of newly emerging countries. Our ultimate goal is to reveal, in a theoretically and practically sound manner, the benefits of promoting international negotiations against global warming.
* Leakage issue: A tendency for greenhouse gas emissions to shift (leak) from a country with strict measures against global warming to one with lax measures. That is, a company may simply transfer its productive activities to a lax country, such that, on a global basis, its emissions may actually increase. The end result, of course, is that no progress is made in reducing overall (global) greenhouse gas emissions.

Climate changeEnergy problem
Grant year
FY2008 Research Grants
Grant term
3 years
April 2009 - March 2012
Grant amount
29,700,000 yen
Activity region
Japan, USA, PRC, Europe
A workshop at Sophia University (August, 2009)

Overview of the Organization

Director, Toshihide Arimura
Director, Toshihide Arimura
Specialist fields
Environmental economics
Affiliated academic societies
Board of Directors, Society of Environmental Economics and Policy Studies; Japanese Economic Association; Board of Directors, Sustainable Management Forum; Association of Environmental and Resource Economists
In 1992 graduated from the College of Arts and Science at the University of Tokyo
In 1994 obtained a M.S., Environmental Sciences from the University of Tsukuba
In 2000 completed a Ph. D., in Economics from the University of Minnesota
Became a Lecturer in 2000 at the Department of Economics, Sophia University
In 2004 was appointed Associate Professor at the Department of Economics, Sophia University;
and other institutions, including: the National Institute of Science and Technology; Resources for the Future (Washington D.C.), and George Mason University)
Collaborating researchers
Morihiro YOMOGIDA, Associate Professor, Sophia University Faculty of Economics; Tsuyoshi KAWADA, Professor, same; Shiro TAKEDA, Associate Professor, Department of Economics, Kanto Gakuen University; Nori TARUI, Assistant Professor, Department of Economics, University of Hawaii; Richard D. MORGENSTERN, Senior Fellow, Resources for the Future; Alan FOX, International Economist, U.S. International Trade Commission; Carolyn FISHER, Senior Fellow, Resources for the Future
Research record
  • (1) "Is a Voluntary Approach an Effective Environmental Policy Instrument? A Case for Environmental Management Systems" Journal of Environmental Economics and Management 55 (2008) 281-295. (Coauthors, A. Hibiki & H. Katayama)
  • (2) "An Empirical Study of the SO2 Allowance Market:Effects of PUC Regulations," Journal of Environmental Economics and Management. 44 (2002) 271-289.
  • (3) An Introduction to Environmental Economics, CHUOKORON-SHINSHA, INC. 2002 (jointly written with Akira Hibiki)