Energy and environment policy integration - The case of energy conservation policies and technologies in Japan

Among the OECD countries, Japan has achieved one of the lowest energy intensities and has been successful in reducing emissions of key air pollutants and CO2 associated with energy use while maintaining a relatively high rate of economic growth, indicating that in Japan energy and environment policies have been able to address each other effectively. This study shows that in both policy domains, considerable importance was attached to the enhancement of energy conservation. The industrial sector has been the most responsive in reducing energy intensity as well as in controlling pollution. Aided by government fiscal measures, the iron and steel, chemicals and automobile industries have pursued both energy conservation and pollution control through suitable process or product innovation. The recent response to global environment issues shows that both the government and the industrial sector are determined to enhance energy conservation and environmental amelioration through technological innovation, indicating that Japanese technologies will continue to be 'environmentally competitive'.