A blog about Policy

It is perhaps not very surprising that Japan is leading the developed countries in energy conservation. According to this New York Times story, the country has achieved this by a combination of technology development;

In many countries, higher oil prices have hurt pocketbooks and led to worries about economic slowdowns. But here in Japan, Kiminobu Kimura, an architect, says he has not felt the pinch. In fact, his monthly energy bill is lower than a year ago.

A reason is his new home fuel cell, a machine as large and quiet as a filing cabinet that sits in front of his house and turns hydrogen into electricity and cold water into hot — at a fraction of regular utility costs.
….
Energy-efficient appliances abound in the many corners of his cramped home. There is the refrigerator that beeps when left open and the dishwasher that is compact enough to sit on the kitchen counter. In some homes, room heaters have a sensor that directs heat only toward occupants; there are “energy navigators” that track a home’s energy use.

and a conservation ‘mindset’ :

“It’s not just technology, it’s a whole mind-set,” said Hitoshi Ikuma, a specialist in energy issues at the Japan Research Institute. “Energy conservation is almost an obsession here among government, companies, regular citizens, everyone.”

Of course, since this is the New York Times reporting, the benevolent and sensible involvement of the government needs to be highlighted:

The guiding hand of government has also played a role, forcing households and companies to conserve by raising the cost of gasoline and electricity far above global levels. Taxes and price controls make a gallon of gasoline in Japan currently cost about $5.20, twice America’s more market-based prices.

The government in turn has used these tax revenues to help Japan seize the lead in renewable energies like solar power, and more recently home fuel cells. One way has been a subsidy of about $51,000 for each home fuel cell. This allowed Mr. Kimura to buy his cell last year for about $9,000, far below production cost. His cell, which generates one kilowatt per hour, provides just under half of his household’s electricity, and has cut his electricity bill by the same amount, he said.