Simulation Studies on the CO2 Emission Reduction Efficiency in Spatial Econometrics: A case of Japan

In this paper, we estimate the CO2 emission function based on the production function, taking into account the interregional spillover effect in Japan. Using the estimated result, we propose suitable means of simulation using spatial econometrics and simulate which prefecture can reduce the CO2 emission most efficiently. Our results indicate that prefectures that are located in urban areas reduce CO2 emissions more efficiently than do those located far from urban spaces.Carbon dioxide (CO2)

Using Economic Incentives to Reduce Electricity Consumption: A field Experiment in Matsuyama, Japan

This study examines the effectiveness of economic incentives in promoting electricity-conservation behavior among Japanese households. Fifty-three Japanese households participated in a field experiment and were offered monetary rewards depending on their rate of reduction in electricity consumption. To avoid bias in sample selection, which is typically present in previous studies, we adopted a request-based approach for recruiting participants. Results showed that only 34% of the participants succeeded in reducing their electricity consumption, and the average reduction rate was –4.8%. Econometric analysis confirmed that monetary rewards had a positive influence on the electricity conservation behavior, especially of family members who typically stay at home on weekdays. Responses to the questionnaires administered before and after the experiment suggest that participants may have underestimated the marginal costs of the electricity conservation behavior. The efficacy of economic incentives, established in our study, offers a potential measure for encouraging electricity-conservation behavior among Japanese households. Keywords: Economic incentive; Electricity conservation; Household behavior JEL Classifications: Q38; Q4

An empirical study on the rebound effect considering capital costs

Technological progress is one of the means of reducing energy usage and carbon dioxide (CO2) emissions. However, this reduction, in turn, leads to a reduction in the real cost of energy services per unit, which results in an increase in the demand for energy services. Therefore, a reduction in the anticipated CO2 emissions caused by a technological improvement might be partially offset in response to the cost reduction. Previous studies have referred to this effect as the "rebound effect." A large amount of empirical evidence on the rebound effect exists; however, most of these studies assume an exogenous improvement in energy efficiency, and thus, capital costs that may decrease the magnitude of the rebound effect are not taken into account expressly. This paper extends the scope of the research conducted by Brannlund et al. [Brannlund, R., Ghalwash, T., Nordstrom, J., 2007. Increased energy efficiency and the rebound effect: effects on consumption and emissions. Energy Economics 29, 1-17] in terms of two aspects: (i) considering capital costs explicitly as additional capital costs and (ii) adapting an iterating procedure, and estimating the rebound effect, using Japanese household data. As a result of our empirical analysis, we conclude that the rebound is approximately 27%. However, we also find that ignoring additional capital costs leads to an increase in the rebound effect. In the case of Japanese households, the magnitude of the rebound effect increases to approximately 115%. Moreover, our simulation study shows that only a one-time iteration of Brannlund et al. [Brannlund, R., Ghalwash, T., Nordstrom, J., 2007. Increased energy efficiency and the rebound effect: effects on consumption and emissions. Energy Economics 29, 1-17] may lead to a biased result.

Using Economic Incentives to Reduce Electricity Consumption: A field Experiment in Matsuyama, Japan

This study examines the effectiveness of economic incentives in promoting electricity-conservation behavior among Japanese households. Fifty-three Japanese households participated in a field experiment and were offered monetary rewards depending on their rate of reduction in electricity consumption. To avoid bias in sample selection, which is typically present in previous studies, we adopted a request-based approach for recruiting participants. Results showed that only 34% of the participants succeeded in reducing their electricity consumption, and the average reduction rate was –4.8%. Econometric analysis confirmed that monetary rewards had a positive influence on the electricity conservation behavior, especially of family members who typically stay at home on weekdays. Responses to the questionnaires administered before and after the experiment suggest that participants may have underestimated the marginal costs of the electricity conservation behavior. The efficacy of economic incentives, established in our study, offers a potential measure for encouraging electricity-conservation behavior among Japanese households