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Green Shoot: Abenomics and the 3rd Arrow

Published online by Cambridge University Press:  07 May 2025

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This article describes the impressive, resilience-targeted greening of Japan, evident in nationwide deployments of renewable energy, radical efficiency, and other core aspects of sustainability. These developments are already underway, and include public- and private-sector actors as well as community groups. The greening also has promising stamina due to being increasingly deeply inscribed in the fiscal, regulatory and other mechanisms of a rapidly emergent industrial policy.

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Research Article
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This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-No Derivatives licence (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work.
Copyright
Copyright © The Authors 2013

References

Notes

1 One example of the criticism is the Economist's “Misfire: Shinzo Abe disappoints with a timid attempt at structural reform,” June 15.

2 In the literal sense of the word: “amendment of what is defective, vicious, corrupt, or depraved”. Perhaps in due time the mainstream economic debate will put sustainability at the core of “structural reform.”

3 On this, see: “Renewables to surpass gas by 2016 in the global power mix,” International Energy Agency, June 26, 2013. The IEA not only tell us that “Renewables are now the fastest-growing power generation sector,” but also that developed countries with smart, “long-term” policies (like Japan) are well- positioned to take advantage of a revolution that is increasingly salient (and likely to account for two-thirds of deployment) in the developing countries.

4 Not only have the regulatory changes been scarce, but the extent and degree of criminality and outright incompetence is only now becoming apparent. On this, see the beautifully written overview of UK banks’ truly “rotten” state by John Lancaster “Are We Having Fun Yet?” London Review of Books, Vol. 35 No. 13 July 4, 2013.

5 Pavan Sukhdev, Corporation 2020: Transforming Business For Tomorrow's World. Island Press, 2013.

6 Note, however that Paul Krugman is beginning to make the connections, although not yet between green and the Abenomics he applauds. See Paul Krugman, “Invest, Divest and Prosper,” New York Times, June 28, 2013.

7 Former PM Kan Naoto in fact got so outraged with PM Abe's efforts to sell nuclear technology that on June 17 he derided him as “the salesman for the nuclear village”

8 For example, the LDP Special Committee on ICT Strategy submitted a report on May 21 of 2013, titled “Digital Japan 2013: Taking Back Japan via ICT.” The report is a compendium of new strategies for innovating and diffusing ICT throughout all sectors of the economy and society, and argues for a nationwide rollout of the renewable and efficiency-centred reconstruction in Tohoku. The report is available here. A summary in the June 11 edition of ICT Pro is available here.

9 As eminent Japan scholar and Columbia University Professor Gerald Curtis observes, “there's a battle inside Abe between the pragmatic realist and the ideologue who's committed to a view of history that's shared by no one outside Japan, and very few people within Japan.” See Rick Wallace,” Behind Shinzo Abe's economic program lurks a desire to airbrush history,” The Australian, April 27, 2013.

10 On the unpopularity of PM Abe's pork-barrel politics in Shimonoseki, see (in Japanese) “PM Abe's Big Treat to his Region,” Sentaku, March 2013. Among other white elephants from the Abe group, Shimonoseki finds itself saddled with the YEN 750 billion Choshu Dejima manmade island with few visiting vessels, as well as the roughly YEN 750 billion Shimonoseki North Bypass highway that also has few users. The present author, formerly resident in Shimonoseki, hopes their smart-city initiative flourishes and gets them over the enormous mountain of debt and maintenance costs incurred by these and other wasteful projects. On the white elephants and their costs, see (in Japanese) “PM Abe appears to be a nuisance for his local district,” Gendai, March 12, 2013.

11 For example, many investors bought into the utilities’ distressed debt and are keen to see their gamble pay off through nuclear restarts that raise the value of their holdings.

12 On this, see p 69 of the Economic and Fiscal Council's June 2013 draft (in Japanese) of the “Growth Strategy”

13 On the feed-in tariff, see Andrew DeWit “A Crossroads for Japan: Revive Nuclear or Go Green?” Yale Environment 360, May 29, 2012.

14 On regulatory hurdles in Japan, see “Japan's feed-in tariff system for clean energy mired in regulations,” Asahi Shimbun, May 22, 2013.

15 On deregulation to promote small hydro and other renewables, see (in Japanese) pp 8-18 of the “Plan for Implementing Deregulation,” Cabinet, Government of Japan, June 14, 2013.

16 On fracking in the US and its potential harm to water resources, see Sandra Postel “Fracking's Threats to Drinking Water Call For a Precautionary Approach,” National Geographic, June 28, 2013.

17 The survey overview is available at the firm's website.

18 Reports indicate that Toyota's foray is aimed at forcing the big utilities to cut their costs as well as to erode their monopoly. On these points, see (in Japanese) “Power Conservation: Toyota's Initiative To Reduce Power Costs,” Mainichi Shimbun, July 5, 2013.

19 See Sui Han, “LED lighting CAGR to reach 31% in 2010-2020, says Toshiba Lightech,” Digitimes, January 17, 2013.

20 The factory is located in the town of Yorii and will employ roughly 2000, producing 250,000 cars per year in a 950,000 square metre facility. An overview (in Japanese) of the facility is available at Honda's website.

21 In English, see “Aeon Mall Yahata Higashi to Open Anew on March 15” On the MLIT's programme, see (in Japanese) “Realizing 50% Power Reduction Eco-Stores via Highly Efficient Air Conditioning and Solar Power,” Smart Japan, April 11, 2013.

22 See (in Japanese) “Hokkaido Electric to Add Sumitomo Electric Built Battery to Grid to Adjust Power Fluctuations, Increase Renewables,” Nikkei Shimbun, July 5, 2013.

23 See (in Japanese) “Sumitomo Heavy Develops a Gear Motor that Cuts Power Loss by 40%, Aiming at Global Energy-Efficiency Standards,” Nikkei Shimbun, July 4, 2013.

24 Alex Chausovsky, “Shaping the Future with Super-Efficient Electric Motors,” Electronics 360, March 5, 2013.

25 See (in Japanese) “18% of Data Centre Businesses Plan New Build,” Nikkei Shimbun, July 4, 2013.

26 The Nikkei article is (in Japanese) “Tobu and Major Private Rail Firms are Deploying Low- Energy Rolling Stock in Response to Power- Price Increases,” Nikkei Shimbun, June 15, 2013. As to outdated expert opinion on what was deemed possible or practical, see Nippon Keidanren's “Views on the Options for Energy and the Environment” dismissal of robust renewable and energy-efficiency goals in July of 2012. They have a somewhat abridged version in English here.

27 See (in Japanese) “Survey Shows 50% of Saitama Firms Cannot Pass on the Power Price Hike,” Nikkei Shimbun, June 5, 2013.

28 See (in Japanese) “Survey Indicates 60% of Chiba Businesses Report a Worsening of Business Conditions and 47% Cannot Pass on Power Price Hikes,” Nikkei Shimbun, June 4, 2013.

29 Concerning on-bill financing, see Casey J Bell, Steve Nadel and Sara Hayes, “On-Bill Financing for Energy Efficiency Improvements: A review of Current Program Challenges, Opportunities, and Best Practices,” American Council for an Energy-Efficient Economy, Research Report E118, December 8, 2011:

30 On this, see (in Japanese) “59% Opposed to Nuclear For Growth, 58% Opposed to Restarts,” Asahi Shimbun, June 11, 2013.

31 See (in Japanese) “Clean Consumer Survey,” Nikkei Ekorojii, July, 2013. The survey can also be accessed online.