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Japanese households will see a rise in disposable income, even if aggressive measures to cut carbon emissions were put in place, according to data compiled by the Liberal Democratic Party (LDP) which governed the country up until last month.
The figures forecast that average household disposable income will rise to US$61,100 in 2020, from US$52,700 in 2005, if Japan cuts emissions by 25 per cent from 1990 levels by that year. The target was recently announced by the countrys new prime minister, Yukio Hatoyama.
The LDP data, released by Kyodo news agency over the weekend, estimated that average household income would enjoy greater increases if more modest emission targets were adopted, suggesting that average disposable incomes would reach $63,300 in 2020 with a 15 per cent emissions cut, and $64,300 if emissions are reduced by eight per cent
However, experts involved in compiling the statistics told Kyodo that the estimates did not take into account any potential cost benefits brought about by likely future price declines for green products, such as solar panels and hybrid cars, which could lead to increased disposable incomes.
The statistics, gathered to help the LDP set a CO2 target, led to an announcement in June by then-prime minister Taro Aso of an eight per cent reduction on 1990 levels by 2020. It was criticised by China and climate scientists for not being ambitious enough.
The LDP defended its decision by saying that a 25 per cent target would impose a financial burden of about $4,000 annually on Japanese households.
In August, a government panel report estimated that the average household will face increased costs of up to $809 a year to pay for policies that would cut emissions by 15 per cent below 2005 levels by 2020.
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