Japan Begins Study in Carbon Tax

March 11, 2000—The Guardian reports that, according to Japanese government officials, a subcommittee of Japan’s Tax Commission has launched a study to develop a green tax on industries that emit carbon dioxide and other greenhouse gases.

The Tax Commission’s study is in response to growing concern in Japan for the need to combat global warming. The Commission is reportedly considering a tax on petroleum products similar to taxes implemented in the early 1990s by the Netherlands and several Nordic countries.

Such a tax is likely to meet strong opposition from the business community. Officials have noted that commission will be hard-pressed to avoid overburdening petroleum-dependent industries. Some economists have also expressed concern that a green tax would have a far-reaching impact on the Japanese economy.

The tax is also designed to reduce air pollution from diesel-powered vehicles and is likely to include some restriction on the use of these vehicles.