Analysis of the effects of environmental regulation: A case study on countermeasures against sulphur dioxide in Japan

Abstract

The Japanese approach towards controlling sulphur dioxide emissions may serve as a model of success in dealing with pollution problems. For Japanese policy measures against sulphur oxides, carbon monoxide, and photo-chemical smog have been largely successful in reducing these pollutants. In particular, measures against sulphur dioxides have proved extremely effective. However, the investment required to implement these measures has amounted to more than half the entire plant and equipment investment in a given sector at the time, and the resultant impact on the economy as a whole has been significant. Accordingly, we have chosen this case because it demonstrates both the potential and the costs of these policy measures. However, as the actual sulphur dioxide regulations are complicated, their content has not been considered here in detail. (We will only review the approach and its outcome). In addition, there may be other contextual factors which have contributed to the successful reduction in sulphur dioxide emissions. So this paper provides interim results.