OVERVIEW OF COMPETITIVENESS ISSUES IN JAPAN

The document examines how a hypothetical carbon price of 3000¥/t would affect Japanese industry, identifying 17 subsectors at risk. While findings align with similar studies in the UK, Germany, and USA, the Japanese pig iron subsector is noted as being disproportionately affected. However, the overall impact on the competitiveness of final products like flat steel is expected to be minimal compared to other trade influences.

• A carbon price of 3000¥/t (approximately 30 USD/t) identifies 17 Japanese subsectors most at risk of competitiveness impacts, with results largely similar to studies conducted in the UK, Germany, and the USA.
• The pig iron subsector in Japan is disproportionately affected by carbon costs compared to other regions, showing high sensitivity and lower economic value added per unit of energy.
• Despite the risk to pig iron, the impact on the final product of flat steel is expected to be minimal; a 3000¥/t carbon price would likely increase flat steel prices by 1.25%, leading to a 1% fall in international competitiveness and a 3% fall in domestic demand if costs are fully passed to consumers.
• Aluminium is identified as a notable exception in Japan, as it is comparatively less at risk than in similar studies of other countries.
• Japan's use of high-resolution 4-digit SIC code sector definitions allows for more detailed insight into specific production stages at risk, such as distinguishing between petrochemical basic products and petrochemical aromatic products.

APA

Climate Strategies (2009). OVERVIEW OF COMPETITIVENESS ISSUES IN JAPAN. https://climatestrategies.org/wp-content/uploads/2014/11/100115-japan-issues-and-options-final.pdf

Chicago

Climate Strategies. OVERVIEW OF COMPETITIVENESS ISSUES IN JAPAN. 2009. https://climatestrategies.org/wp-content/uploads/2014/11/100115-japan-issues-and-options-final.pdf.

Wikipedia

{{cite report |author=Climate Strategies |title=OVERVIEW OF COMPETITIVENESS ISSUES IN JAPAN |date=December 2009 |url=https://climatestrategies.org/wp-content/uploads/2014/11/100115-japan-issues-and-options-final.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatestrategies2009overview, author = {{Climate Strategies}}, title = {{OVERVIEW OF COMPETITIVENESS ISSUES IN JAPAN}}, institution = {Climate Strategies}, year = {2009}, month = dec, url = {https://climatestrategies.org/wp-content/uploads/2014/11/100115-japan-issues-and-options-final.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }