Chapter 10
Economic Assessment of Japan’s Nuclear
Power Policy
Masato Yamazaki and Weisheng Zhou
Abstract This chapter assesses the importance of nuclear power from the viewpoints of gross domestic product (GDP) and carbon dioxide emissions in Japan. The
assessment is conducted using a computable general equilibrium (CGE) model. The
CGE model is constructed based on the GTAP-Power database, which is an
electricity-detailed extension of the GTAP 9 database, a global input–output table.
The simulation results indicate that nuclear power generation is not significantly
important for Japan in terms of GDP, because fossil fuel power compensates for
shortages in the electricity market. In terms of CO 2 emissions, nuclear power is an
important power source for Japan. An increase in fossil fuel power generation causes
a non-negligible amount of CO 2 emissions.
10.1 Introduction
Since the Fukushima Daiichi nuclear accident in 2011, power source composition
has been debated in Japan. Advocates of nuclear power focus on its cost advantages,
claiming that the replacement of nuclear power with relatively expensive electricity
generated using fossil fuels or renewables would place a burden on the Japanese
economy. Japan is largely energy-independent, although it is affected by the politics
of major oil-producing countries. Further, through increased CO 2 emissions, fossil
fuel power generation would accelerate climate change. Thus, advocates assert that
nuclear power is an important energy source politically, environmentally, and
economically. Those who are opposed to nuclear power desire the phasing out of
nuclear power plants and the development of renewable energy sources. Public
M. Yamazaki
Disaster Mitigation Research Center, Nagoya University, Nagoya, Aichi, Japan
e-mail: yamazaki.masato@nagoya-u.jp
W. Zhou (*)
College of Policy Science, Ritsumeikan University, Ibaraki, Osaka, Japan
e-mail: zhou@sps.ritsumei.ac.jp
© Springer Nature Singapore Pte Ltd. 2021
W. Zhou et al. (eds.), East Asian Low-Carbon Community,
https://doi.org/10.1007/978-981-33-4339-9_10
185
Economic Assessment of Japan’s Nuclear
Power Policy
Masato Yamazaki and Weisheng Zhou
Abstract This chapter assesses the importance of nuclear power from the viewpoints of gross domestic product (GDP) and carbon dioxide emissions in Japan. The
assessment is conducted using a computable general equilibrium (CGE) model. The
CGE model is constructed based on the GTAP-Power database, which is an
electricity-detailed extension of the GTAP 9 database, a global input–output table.
The simulation results indicate that nuclear power generation is not significantly
important for Japan in terms of GDP, because fossil fuel power compensates for
shortages in the electricity market. In terms of CO 2 emissions, nuclear power is an
important power source for Japan. An increase in fossil fuel power generation causes
a non-negligible amount of CO 2 emissions.
10.1 Introduction
Since the Fukushima Daiichi nuclear accident in 2011, power source composition
has been debated in Japan. Advocates of nuclear power focus on its cost advantages,
claiming that the replacement of nuclear power with relatively expensive electricity
generated using fossil fuels or renewables would place a burden on the Japanese
economy. Japan is largely energy-independent, although it is affected by the politics
of major oil-producing countries. Further, through increased CO 2 emissions, fossil
fuel power generation would accelerate climate change. Thus, advocates assert that
nuclear power is an important energy source politically, environmentally, and
economically. Those who are opposed to nuclear power desire the phasing out of
nuclear power plants and the development of renewable energy sources. Public
M. Yamazaki
Disaster Mitigation Research Center, Nagoya University, Nagoya, Aichi, Japan
e-mail: yamazaki.masato@nagoya-u.jp
W. Zhou (*)
College of Policy Science, Ritsumeikan University, Ibaraki, Osaka, Japan
e-mail: zhou@sps.ritsumei.ac.jp
© Springer Nature Singapore Pte Ltd. 2021
W. Zhou et al. (eds.), East Asian Low-Carbon Community,
https://doi.org/10.1007/978-981-33-4339-9_10
185