Wednesday, March 23, 2011

Tax electricity consumption and raise money for relief

Because of the breakdown of Fukushima Daiichi Nuclear Power Plant caused by the big earthquake and tsunami, electricity supply in the Tokyo metropolitan area is in shortage. The so-called "planned blackouts" have been implemented almost every day in various parts of the area. Because there is no hope for the nuclear power plants to recover, and because it will take time to build alternative sources of electricity, the Tokyo metropolitan area will suffer power shortage for many months in the future. The government is calling for efforts to save electricity, and many companies and institutions, including the one that I work for, have stopped using the heating system and turned off redundant lights.
However, on my way home on the day when the Minister of Economy, Trade, and Industry called for more efforts to save electricity, I saw many stores that ignored the call and kept on lighting their luxurious lights as if nothing had ever happened. Simply calling for the people's consciousness to save electricity is not enough, because there is no way to force the people who lack consciousness to save electricity.
The "planned blackouts" have shown us how deeply our daily lives depend on electricity supply. Several traffic accidents are reported that are believed to be triggered by the blackout of traffic signals. Frequent blackouts will severely damage people's daily lives and productive activities. We need to consider a way to suppress electricity demand, rather than simply turning off the switch.
I think all economists agree that the best way to balance supply and demand when demand exceeds supply is to raise the price. Even those who have no intension to change their lives will be given the incentive to save electricity. At this moment, however, if TEPCO (Tokyo Electricity Power Company) raises prices, it will trigger public anger against the company. But if the government levies a temporary tax on electricity consumption, pursuading the public that the collected tax will be used for the relief of the people living in the area struck by the earthquake and tsunami, I think people will support such proposal.

2 comments:

  1. This is a good suggestion, Tomoo. Actually, recent surveys have shown that a good majority of the Japanese are in favor of making contributions via taxes to the restoration of what was lost in the recent disaster. The polls, however, didn't necessarily state that the people are open to applying the taxes to their electricity consumption. Even so, it's still great news because it reflects the admirable values that the Japanese uphold. Let's hope that this plan materializes.

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  2. In regards to your last point regarding the tax collected to relieve the people affected by the natural disasters, I agree people will be on board with that. Most people are generally decent and realize if the same scenario happened to them, they would appreciate the relief.

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