The Effects of Introduction of Bio-Ethanol in Japan—A Survey of 3E’s Vision: Environment Protection, Economic Efficiency and Energy Security

• Main Authors: Yen-Lin Wang, 王彥麟
• Other Authors: Cheng-Yih Hong
• Format: Others
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/88863332082037642218

碩士 === 淡江大學 === 亞洲研究所碩士班 === 98 === The main purpose of this paper is to investigate the effects of Bio-Ethanol policy in Japan. By the analysis of 3E’s vision, we can obtain the following mainly results: First, by introducing the E3 and E10 to Japan, the reduction of CO2 emission will be equivalent to the annual emissions of transport sector’s 1.03% and 3.67%. However, it requires importing large quantities of Bio-Ethanol to be achieved. In other words, there is a possibility that the CO2 emission would not be reduced in the whole earth and Japan just export CO2 emission to the country of Bio-Ethanol maker. Second, in the current crude oil price, if we choice price of carbon trading market as a comparison, we can find that CO2 emission reduction policy of Bio-Ethanol is inconsistent with the cost. First study has indicated that CO2 emission reduction’s cost can be improved through the rise in crude price and decline in the price of Bio-Ethanol. But the price of crude oil and ethanol are connected with a considerable degree. Therefore, we can’t expect the cost improved by this kind of price change in the future. However, based on IEA’s forecast, there is a possibility that carbon emission trading price may soar to $41-191 in 2030. It means that carbon reduction policies of Bio-Ethanol are not entirely worthless. Third, cost is a major obstacle to introduce the Bio-ethanol in Japan. As described in this paper, Brazil reduces costs of Bio-Ethanol through cheap labor, but low wages are not available in Japan. In addition, Japanese government is going to lower the tariff on ethanol and the strong yen is seem to last for a long time, Bio-Ethanol which import from overseas would be more price-competitive in the foreseeable future.