Impact of Electric Power Pricing Reforms on the Japan’s Industry and Household Sector
Woojong Jung
Department of Socio-Environmental Studies, Faculty of Socio-Environmental Studies, Fukuoka Institute of Technology
DOI: https://doi.org/10.59429/bam.v6i1.6168
Keywords: Input-Output Analysis; Electric Power Price; Corporate Goods Price Index; Consumer Price Index
Abstract
After the Fukushima nuclear power plant accident, Japan had an opportunity to advance its economic and energy policies to pursue stable energy supply, economic efficiency, environmental security, and safety. The accident not only raised concerns regarding the safety of nuclear power plants but also increased awareness regarding the effect of energy import growth on the economy and related issues such as the effect of imports on Japan’s international competitiveness. This study simulates the impact on electricity prices using three potential scenarios for Japan. According to the results, the consumer price index (CPI) was larger than the corporate goods price index (CGPI) for Japan in all cases. In the simulation results, the CPI was observed to have an increased effect of 0.88%–3.59% against a 0.84%–3.41% increase in the CGPI. The surge in electricity prices significantly impacted the supply of electricity, gas, and heating and also the business services sector. The cost of policies that maintain safety, the increase in costs resulting from the overseas importation of fossil fuels, and the cost of promoting renewable energy in conjunction with the reutilization of nuclear power plants leading to higher electricity prices will also be considered in the future.
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