The Ratification of the Kyoto Protocol as a Springboard for Geographically-Distributed Industrial Restructuring

ABSTRACT

Under the direction of Japan and Europe, the Kyoto Protocol is on the verge of being realized-though without the presence of the U.S. Now is an opportunity for Japan to review its past successes in the fields of environmental science-as during the energy crisis and the time of proliferating anti-pollution regulations-when Japan took advantage of the situations and was able to enhance its global competitiveness. Japan is a resource-rich country; high precipitation brings about lush and fertile land and biomass energy resources, and like the U.S., Japan is also endowed with a large amount of scrap iron. In fact, Japan is in possession of the five important resources that were highly valued in ancient Chinese philosophy : forests, (biomass) energy, fertile land, scrap iron, and water. Accordingly, Japan must enhance its faltering competitiveness by utilizing fully all of its resources; doing so will also allow Japan to achieve the CO2 emissions reduction target of 60 million tons stipulated in the Kyoto Protocol.

Reducing CO2 emissions requires five policy measures: (1) higher operations rates of nuclear power plants, (2) higher ownership of fuel-efficient vehicles, (3) higher dependence on biomass energy, (4) technological innovation toward higher fuel efficiency, especially for energy-utilizing industries, along with the enhancement of their competitiveness, and (5) the introduction of white light-emitting diodes (LEDs) which would lead to a reduction in energy consumption for households.

Implementation of the above measures will allow Japan to achieve the Kyoto Protocol's CO2 emissions target. These policy measures will also bring about strengthened competitiveness for the energy and automobile industries. Furthermore, as ripple effects, lowered steel prices will help the recovery of the ailing electronics and machine industries. The key to successfully implementing these policy measures is to a large extent reliant upon a plethora of innovative ideas for distribution processes in the biomass energy and recycling industries; rejuvenated distribution processes will bring about a decentralized industrial structure and more independent regional economies throughout Japan, and will also facilitate the achievement of the so-called "50% Energy Self-Sufficiency Ratio by the Year 2030", put forth by FRI chairman Toshihiko Fukui. These policy measures will provide convalescent Japan with four economic blessings: a reduction in CO2 emissions, revitalized regional economies, restored competitiveness, and a higher energy self-sufficiency ratio.