Back to List
Redesigning of the the Japanese Economy Thinking of Energy Shortage

Impact to last Decade or more if Existing Nuclear Plants Shut Down

--GDP Could Drop 2% on Power Shortages



Two months have now passed since the Great East Japan Earthquake struck. Other than the tangible and intangible wounds inflicted by the disaster, constraints on electric power supplies owing to the major accident at the Tokyo Electric Power Company (TEPCO) Fukushima Daiichi nuclear station will continue to weigh heavily on the Japanese economy. According to estimates based on our economic model, if there is a 10% electric power shortage in the Kanto region this summer and economic activity in each industry declines in proportion to its dependency on electric power, economic activity in Japan could fall by over 4% during the summer and by 2% for the year as a whole.


Top Priorities: Address Spent Nuclear Fuel and Surplus Plutonium Issues

Use of Nuclear Energy through 2050 Should Remain On Table

Looking at Abandoning Nuclear Energy by the 2030s


Retaining Nuclear Plants after 2030: Four Conditions

Looking at Retaining Nuclear Power Plants


Energy Saving and Renewable Energy Development Less Costly than Sticking with Nuclear Energy

--Nuclear Generation Could Cost Twice Government Estimates

Looking at the Issue of Abandoning Nuclear Energy



Structural Change in Industry to Ease Downside of Power Shortage

--Avert Current Account Deficit by Shifting Resources to Machinery Industry

Influence of the electricity shortage on Japanese regions and industries

Tatsuo KOBAYASHIKatsuaki OCHIAI/ Yuta Tachi Economist


FY2020 Nuclear Generating Cost Treble Pre-Accident Level

--Huge Price Tag on Fukushima Accident Cleanup

Thinking Costs of Generating Electricity



Pension Reform: Take ‘Energizing’ Approach

--Stimulate Private Investment and Consumption
--Scrap Premiums: Finance via Consumption Tax

Tax and Pension Reform

Kazumasa IWATA


Impact to last Decade or more if Existing Nuclear Plants Shut Down

--GDP Could Drop 2% on Power Shortages

Thinking of Energy Shortage