GRIPS 政策研究センター Policy Research Center


2011/5/16 ~ 2013/3/31

Estimating the impact of government subsidies on Biofuel production and carbon sequestration in Japanese farms


The current Japanese agricultural policy recognizes the important role of agricultural management on several aspects of energy provision. On the one hand, subsidies for the production of biofuels such as rice have been granted since 2010. On the other, agricultural management practices have an important impact on carbon emissions, to the extent that 6 % of total CO2 emissions in Japan have their origin in agricultural activities. Furthermore, current agricultural policy provides subsidies for several other crops and for non-cultivated farmland. The overall purpose of this project is to estimate the impact of government subsidies on the production of biofuels and other crops, as well as on the carbon sequestration of Japanese agricultural soils. We will also investigate the relative efficiency of alternative subsidy schemes, especially those that will encourage the exploitation of non-cultivated land. Before the impact of policies can be assessed, however, it is important to understand the impact of prices, cost of production, management practices, soil type and climate on the final crop production and carbon sequestration of Japanese farms.