Selected Issues Papers

The Financial Impact of Carbon Taxation on Corporates: Japan

Author/Editor:

Jochen M. Schmittmann

Publication Date:

May 18, 2023

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Japan’s commitment to achieve net zero emissions by 2050 will likely require substantial carbon pricing. Corporates appear to be able to absorb a sharp increase in carbon taxes on average, but there is a substantial weak tail of firms that could face financial stress. The analysis underscores the need to align the private sector and public policies with Japan’s climate targets to ensure a smooth transition to net zero.

Series:

Selected Issues Paper No. 2023/034

Subject:

Carbon tax Environment Greenhouse gas emissions International organization Monetary policy Taxes

Frequency:

Regular