Nobel laureate Stiglitz says carbon tax suitable for Japan’s problems

By The Japan Times — March 17, 2017

The Japan Times

Nobel Prize-winning economist Joseph Stiglitz has called on Japan to promptly introduce a carbon tax, calling it the most suitable tax to solve problems such as global warming and shortfalls in financial resources for social security measures.

If a carbon tax, which is levied on companies emitting greenhouse gases, is adopted, they will try to alleviate their tax burdens by investing in technologies to curb emissions, the Columbia University professor told a news conference in Tokyo on Thursday.

Subsequently, Japan’s economy will be invigorated, he said.

Stiglitz expressed concern about the denial of climate change by the administration of U.S. President Donald Trump, saying that its attitude is unscientific.

Japan can exert its leadership in place of the United States on environmental matters, Stiglitz said.

He suggested that Japan’s planned consumption tax increase to 10 percent from the current 8 percent in October 2019 will likely have a negative impact on the country’s economy, saying that it is likely to cause consumers to curb spending.

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