Japanese nuclear power and the Kyoto agreement

A global computable general equilibrium model is used to evaluate interacti ons of nuclear power and climate change policy in Japan. We find that to ma tch official Japanese forecasts for nuclear power would require subsidies o f 50 to 70 percent. We find that the carbon price is $20 to $40 (US 1995$) per ton higher compared with the unconstrained case if nuclear expansion is limited to plants already commissioned or under construction, a scenario w hose likelihood increased as a result of the recent nuclear accident. (C) 2 000 Academic Press. Journal of Economic Literature Classification Numbers: Q4, Q2, F1.