10. Application of AIM/Enduse Model to Japan

Summary. The AIM/Enduse model has been frequently applied to Japanese policy making processes. This chapter illustrates three of these applications. First, the effects of carbon tax and subsidies to reduce CO2 emissions in Japan are introduced. CO2 emissions through 2010 are estimated for four cases: reference case, market case, carbon tax case, and carbon tax+subsidies case. It is shown that the subsidy scheme is a useful option to reduce CO2 emissions. Second, ancillary benefits of CO2 reduction for regional environmental quality are presented. A module to analyze ancillary benefits of CO2 reduction is added to the original AIM/Enduse model. Emissions of CO2, NOx and PM in Aichi prefecture, Japan, are estimated through 2010 and it is shown that countermeasures to reduce CO2 emissions can also reduce air pollutants. Third, CO2 emission scenarios in Japan are quantified based on the four narrative scenarios for Japanese society and economy by referring to IPCC SRES scenarios. The AIM/Enduse model has been applied extensively in Japan (Kainuma et al