Japanese nuclear power and the Kyoto agreement

A global computable general equilibrium model is used to evaluate interactions of nuclear power and climate change policy in Japan. We find that to match official Japanese forecasts for nuclear power would require subsidies of 50 to 70 percent. We find that the carbon price is $20 to $40 (US 1995$) per ton higher compared with the unconstrained case if nuclear expansion is limited to plants already commissioned or under construction, a scenario whose likelihood increased as a result of the recent nuclear accident. (C) 2000 Academic Press. Journal of Economic Literature Classification Numbers: Q4, Q2, F1.