An Evaluation of Carbon Dioxide Emissions Trading among Enterprises -The Tokyo Cap and Trade Program-
This study aims to propose three evaluation methods to
evaluate the Tokyo Cap and Trade Program when emissions trading is
performed virtually among enterprises, focusing on carbon dioxide
(CO2), which is the only emitted greenhouse gas that tends to increase.
The first method clarifies the optimum reduction rate for the highest
cost benefit, the second discusses emissions trading among enterprises
through market trading, and the third verifies long-term emissions
trading during the term of the plan (2010-2019), checking the validity
of emissions trading partly using Geographic Information Systems
(GIS). The findings of this study can be summarized in the following
1. Since the total cost benefit is the greatest at a 44% reduction rate, it
is possible to set it more highly than that of the Tokyo Cap and
Trade Program to get more total cost benefit.
2. At a 44% reduction rate, among 320 enterprises, 8 purchasing
enterprises and 245 sales enterprises gain profits from emissions
trading, and 67 enterprises perform voluntary reduction without
conducting emissions trading. Therefore, to further promote
emissions trading, it is necessary to increase the sales volumes of
emissions trading in addition to sales enterprises by increasing the
number of purchasing enterprises.
3. Compared to short-term emissions trading, there are few enterprises
which benefit in each year through the long-term emissions trading
of the Tokyo Cap and Trade Program. Only 81 enterprises at the
most can gain profits from emissions trading in FY 2019. Therefore,
by setting the reduction rate more highly, it is necessary to increase
the number of enterprises that participate in emissions trading and
benefit from the restraint of CO2 emissions.
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