Addressing air pollution and greenhouse gas emissions in the Pan-Japan Sea Region: an overview of economic instruments

This report analyses atmospheric emissions in the Pan-Japan Sea region countries within the context of some of the economic instruments which are commonly used to address air pollution and Greenhouse Gas (GHG) emissions. Discussions provide an overview of economic instruments, but at the same time expound on some of the challenges and opportunities when using economic instruments to combat atmospheric air pollution in the region.

While the geographical focus is primarily the Pan-Japan Sea region, some references are made to experiences found in the United States and a selected number of European countries.

Recommendations for future measures to curb atmospheric emissions include:

differentiating vehicle and fuel taxation to support the market for cleaner fuels and vehicles
• raising pollution charge rates in countries like China and Russia so that the charge systems could have a greater impact on market behaviour and build on the experience with charge systems in those countries
• expanding the SOx emissions-trading system in China to lower emissions and lessen the threat of acid rain regionally
• engaging the emergent lessons from Japan and European countries in exploring the application of carbon taxation in the wider region to reduce growing GHG emissions

The report concludes that economic instruments can be effective when they carefully consider the context within which they will operate, as the different results will be determined by factors such as economic structure and development, including national interests and policies.