In other words, a substantial reduction in the cost of importing fossil fuels, which at present exceeds JPY 20 trillion (JPY 23 trillion in 2009) and is expected to further increase as prices rise in the future, is possible. Furthermore, as this spending represents investments not costs, revitalization of the economy can be expected. Moreover, great contribution can also be made to Japan’s energy security. Taking the initiative in technological development for renewable energies and energy conservation, lowering costs and mass popularization will again raise estimations of Japan and lead to new economic development through global contributions.
Influence on future generations must also be addressed. Generally, in the case of bonds, particularly deficit-covering bonds, future generations bear the costs in the form of increased taxes. However, “low-carbon recovery bonds” are not to be applied to ordinary expenditures for the present generation. They will provide a great benefit to future generations in the form of cuts in energy costs, establishment of energy security and creation of a low-carbon society. In other words, these bonds are a favourable option from the perspective of appropriate burden-sharing among generations.
Already some trust companies have begun investment trust funds for recovery support, and market interest seems high. Measures could be taken in order to make investment more appealing for the individual investor. For example, a mechanism for favourable treatment within the tax system devised for individuals who purchase low-carbon recovery bonds would not only facilitate purchases, but would simultaneously raise the sense of participation of citizens.
There are multiple options for specific mechanisms for this favourable treatment. For example, an income tax deduction could be given for a certain percentage (50 percent, etc.) of the purchased amount when an individual directly purchases a bond. Likewise, when a bond is purchased using a monetary gift from a parent or grandparent, the capital transfer tax could be waived. In particular for capital transfer tax special measures, a precedent exists in the case of high-quality housing purchases. From the perspective of leaving a stock of high-quality assets for the next generation, compared to inheritance, these bonds are highly significant for both the individual and society.
In any case, recent experiences call for shock therapy on the politics and society of Japan. The potential for Japan to utilize the recent crisis as an impetus to become a global leader in the construction of a new society and the creation of new paradigms rides on the determination and actions taken in politics.
In a worst case scenario, token measures for renewable energies and energy conservation will be merely drawn up, while excessive dependence on nuclear power and fossil fuels, as well as the system lacking checks and balances between government and the power sector, will remain as it is. This scenario would result in a large bill for later generations to settle, and would be an act of betrayal to the people who suffered in the recent tragedy. The responsibility to be borne by survivors is great.
Notes:
* Asahi newspaper, April 26, 2011.
