• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 7 hours Oil prices going Up? NO!
  • 17 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 16 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 2 hours The Tony Seba report
  • 22 hours Oil prices going down
  • 1 day Could oil demand collapse rapidly? Yup, sure could.
  • 3 hours Saudi Arabia turns to solar
  • 15 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 2 days Oil Buyers Club
  • 9 hours Kenya Eyes 200+ Oil Wells
  • 9 hours Are Electric Vehicles Really Better For The Environment?
  • 2 days Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 24 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 2 days Gazprom Exports to EU Hit Record
  • 2 days Could Venezuela become a net oil importer?
  • 23 hours Tesla Closing a Dozen Solar Facilities in Nine States

Is Japan's New Carbon Tax the Final Straw for its Energy Sector?

Japan has just announced that it will gradually introduce a new tax on carbon emissions for oil, natural gas, and coal, over the next five years. Energy costs are already very high since the closing down of all the countries nuclear power plants, and these new taxes will only see those costs increase.

The tax will be introduced in three phases, with the first phase increasing existing levies by 12-31 percent, costing utilities an estimated $1.02 billion each year from 2016.

So far, in order to try and protect the public from high energy prices the utilities have been funding the high cost energy purchases by building up debt. The new carbon taxes could force the utilities to start passing on the increased cost to their customers.

Related Article: Japan Steps Away from Nuclear Power

Yu Nagatomi, a researcher at the Institute of Energy Economics of Japan, said that now is the “time for an open and honest discussion of who is going to pay for the increased fuel bills.”

Nippon Keidanren, Japan’s largest business lobby has pleaded with the government to rethink the new tax, fearing that it could raise energy costs for businesses even further and force some companies to move abroad.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment
  • Herman on October 13 2012 said:
    Japan has just committed economic suicide.
  • David B. Benson on October 10 2012 said:
    Further meltdown of Japan Inc.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News