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The Development and Diffusion Processes of Sustainable Technologies and Implications for Public Policy: A Case Study in Japan

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Adaptation and Mitigation Strategies for Climate Change
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Abstract

There are numerous energy technologies that can contribute to a sustainable society. The market mechanism is an important process for developing and diffusing those technologies, but public policy can and should play important roles to facilitate such processes. In Japan, the national government has taken various initiatives in research and development (R&D) and in the introduction of renewable power technologies since the late 1970s. For example, solar power (PV) technology is often cited as a representative “successful” case initiated and strongly supported by the government.1 This solar power case can be seen as a “success” due to the government-led R&D and diffusion of the sustainable technology. Another “successful” example is wind technology. The installed capacity of wind power technology quickly rose more than 100 MW – as much as the installed capacity of PV. Development funding had been curtailed from national project research in the mid-1980s; and as a result, almost all wind turbines are imported from foreign countries.2 Still, such rapid developments were facilitated by various government measures, such as the Renewable Portfolio Standards (RPS) introduced in 2003. These are typical examples of government-led support for introduction and diffusion of sustainable energy technologies.

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Notes

  1. 1.

    Kimura and Suzuki (2005) described the story of the PV development in detail.

  2. 2.

    Matsumoto et al. (2005) and Matsumoto (2005) discussed the interesting consequences.

  3. 3.

    “The Plan for the Achievement of Kyoto Protocol” endorsed by the Cabinet in April 28, 2005.

  4. 4.

    In our interviews. The Editorial Department of OHM (2006) also quoted similar comments.

  5. 5.

    An interviewee pointed out that the credibility of the company name TEPCO was highly effective for convincing the executives.

  6. 6.

    CO2 emission reduction was estimated by the Study Group for Promotion of CO2 Heat Pump Based Water Heater (2005). It is a report created by the private working group to the director general of Agency for Natural Resources and Energy, the affiliated agency of METI (Ministry of Economy, Trade and Industry). Primary energy consumption reduction was calculated by the authors based on CRIEPI (2005).

  7. 7.

    After FY2006, the financial support scheme was changed to fixed-amount support. The amount of support was about $500 in that year and has decreased gradually. However, the average street price of Eco-Cute has alsov dropped, and the sales of Eco-Cute have not slowed down significantly until now.

  8. 8.

    This guideline is being discussed under the initiative of the Institute for Building Environment and Energy Conservation (IBEC), which is an organization affiliated with MLIT.

  9. 9.

    Matsumoto et al. (2003, 2005) and Matsumoto (2005) proposed a concept “relevant outsiders” in such phenomenon. “Relevant outsiders” are the outsider actors of the traditional stakeholders, but they have some kind of knowledge or interest in the issue. They are relatively free from some common opinions, basic assumptions, or traditional beliefs of the established circle, so they can be more free-minded than traditional actors. They often make some breakthroughs or innovations. Juraku et al. (2007) proposed a similar concept, “relevant marginal actor,” in the local social decision-making process of nuclear power plant sites as an extension of Matsumoto’s concept.

  10. 10.

    Of course, they patented several dozen of the technological elements that they invented. These patent rights are shared by TEPCO, CRIEPI, and Denso. However, they did not patent the basic concept of “Eco-Cute.” The heat pump technology itself has existed since the beginning of the 20th century, and the idea of a CO2 heat pump is not a new invention.

References

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Correspondence to Tatsujiro Suzuki .

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Appendices

Appendix 19.1: List of Interviews

<Eco-Cute Case>

Mr. Kazutoshi Kusakari, a member of TEPCO Eco-Cute team (January 17, 2007)

Dr. Michiyuki Saikawa, a member of CRIEPI Eco-Cute team (January 25, 2007)

Mr. Shizuo Tsuchiya, a member of Denso Eco-Cute team (January 30, 2007)

Mr. Koji Takakura, Chofu Seisakusho Co., Ltd. (March 6, 2007)

Mr. Yutaka Takeuchi & Mr. Kazutoshi Kusakari, TEPCO (May 24, 2007)

Mr. Kiichiro Sato, Research Institute of Economy, Trade and Industry (RIETI), Former METI Officer (September 18, 2008)

Mr. Masaki Hirano, Denki Hoan Kyokai Zenkoku Renraku Kaigi, Former METI Ofiicer (September 25, 2008)

Appendix 19.2: History of Eco-Cute Development

1960s

Power utilities started the sales of conventional electric water heater (to promote load stabilization)

1985

CRIEPI joined the “Super Heat Pump” national R&D project

They also started an independent R&D project on heat pump technology

Late 1980s

TEPCO introduce the multifunctional heat pump water heater for domestic market (but not good sales due to high price and insufficient performance)

1988

CRIEPI started the R&D of “two-stage compressing heat pump cycle” water heater

1990

Denso started the CO2 heat pump technology (targeted to the European automobile air conditioner market)

1992

CRIEPI canceled the commercialization of their “two-stage compressing heat pump cycle” water heater owing to high price and CFC regulation

They changed the target market to business use (adopting CFC substitutes in response to CFC regulation)

1993

CRIEPI started the basic R&D of natural refrigerants (including CO2)

1995

CRIEPI concluded that CO2 is the best natural refrigerant for water heater use

1996

CRIEPI installed an experimental CO2 heat pump loop

1997

COP3 conference in Kyoto – Kyoto Protocol was approved

Regulation for CFC substitutes was also decided: CRIEPI canceled the commercialization of their water heater for business use

1998

Japanese government started to introduce various measures in response to the Kyoto Protocol, but no special action in the domestic water heater field

1998.3

TEPCO people visited CRIEPI

Dr. Saikawa introduced CO2 heat pump water heater technology

1998.4

TEPCO decided to develop the CO2 heat pump water heater for household use market

CRIEPI introduced Denso to TEPCO as a collaborator

1999.2

TEPCO, CRIEPI, and Denso began the joint development

1999

TEPCO began the “all-electrification” promotion campaign

2000.7

TEPCO introduced the “Denka-Jozu” new electricity rate system

2000.8

METI inquired about a new energy conservation product for TEPCO

TEPCO introduced the CO2 heat pump water heater (which was under development at that time)

METI began the consideration on the financial support scheme for TEPCO’s new water heater (TEPCO submitted the data on their water heater; METI negotiated with MOF)

2000.12

Final release candidate model of CO2 heat pump water heater was accomplished

2001.1

TEPCO named the new water heater Eco-Cute

They announced the release of Eco-Cute in May 2001

2001.5

First Eco-Cute product was released

2001.6

Mitsubishi Electric entered the Eco-Cute business

The phrase “high-efficiency household water heaters” appeared for the first time in an official government document

2001.10

Matsushita Electric, Matsushita Electric Works, Daikin Industries, and Sanyo Electric entered the Eco-Cute business

2001

Eco-Cute received the “Energy-Saving Grand Prize” from ECCJ

2002

More than 6,000 Eco-Cute products were shipped during the first fiscal year

Government financial support scheme was introduced

2002.10

Chofu Seisakusyo entered the Eco-Cute business

2004

TEPCO’s “Switch!” promotion campaign

2004.10

Hitachi Home & Life Solution entered the Eco-Cute business

2005.10

Sanden entered the Eco-Cute business

2005.11

Hitachi Housetec entered the Eco-Cute business

2006

There were more than 700,000 Eco-Cute cumulative shipments

2007.10

There were more than one million Eco-Cute cumulative shipments

2008.10

There were more than 1.5 million Eco-Cute cumulative shipments

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Juraku, K., Suzuki, T. (2010). The Development and Diffusion Processes of Sustainable Technologies and Implications for Public Policy: A Case Study in Japan. In: Sumi, A., Fukushi, K., Hiramatsu, A. (eds) Adaptation and Mitigation Strategies for Climate Change. Springer, Tokyo. https://doi.org/10.1007/978-4-431-99798-6_19

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