The Japanese government has declared its aim of reducing greenhouse gas emissions in Japan to net-zero and achieving carbon neutrality by 2050. It has also stated that, under its “Green Growth Strategy,” it will promote policies that contribute to growth centered on decarbonization, including carbon pricing.
In this way, through the active initiatives of firms and households, together with the government’s measures, the externalities of climate change that were originally not recognized are now gradually becoming reflected and “internalized” in the decision making of a wide range of agents. The key to addressing climate change issues is how to reinforce these trends. II.