WIAS Seminar Series
“Research Seminar for Transdisciplinary Perspectives Toward Environmental Sustainability” WIAS RIEEM WINPEC Seminar Workshop on environmental and energy（7/22）
Abstract
“TBA”
Dr. Hidemichi Yonezawa
“Targeting Corrective Subsidies for Cost-Effectiveness and Equity: A Case for Differentiated Support for New and Existing Homes”
Dr. Takahiko Kiso
This paper examines the optimal design of corrective subsidies for positive externalities in settings where eligibility and subsidy amounts can vary across market segments defined by recipients’ characteristics, such as location or income. It develops a unified framework that decomposes each segment’s optimal subsidy into three components aligned with the program’s objectives: externality correction (Pigouvian), cost-effectiveness (Ramsey), and redistribution. The relative importance of these components depends on the shadow value of the program budget, capturing trade-offs among the objectives. I analyze how optimal targeting is shaped by heterogeneity in subsidy elasticity across segments, variation in social welfare weights across consumer classes, and the magnitude of the externality and program budget. As an empirical application, I apply a sufficient statistics approach to study solar PV installation subsidies in Japan, estimating that installations in existing homes are 2 to 2.5 times more responsive to subsidies than those in new homes. Counterfactual simulations illustrate the optimal degree of subsidy differentiation between the two housing segments and its welfare implications under varying assumptions about the externality, budget size, and distributional priorities.
Program
15:30 – 15:35 Opening Remark
Prof. Toshi H. Arimura (Director, Research Institute for Environmental Economics and Management, Waseda University)
15:35 – 16:30
Dr. Hidemichi Yonezawa（Senior Economist in the Modelling and Outlooks team at OECD）
“TBA”
16:30 – 17:25
Dr. Takahiko Kiso（Senior Lecturer (Associate Professor) in Economics at the University of Aberdeen Business School）
“Targeting Corrective Subsidies for Cost-Effectiveness and Equity: A Case for Differentiated Support for New and Existing Homes”
Speakers
Dr. Hidemichi Yonezawa
Hidemichi Yonezawa is a senior economist in the Modelling and Outlooks team in the Environment and Economy Integration Division at the OECD Environment Directorate.His analysis and research focus on examining the role of public policy by employing both theoretical framework and numerical simulation models. I investigate how to design public policy by examining the economic efficiency and distributional impacts across regions and among households differentiated by various socio-economic characteristics, such as income, residence area (urban vs. rural), or age. My research interest lies in environmental/energy economics as well as international trade.
Dr. Takahiko Kiso
Takahiko Kiso is a Senior Lecturer (Associate Professor) in Economics at the University of Aberdeen Business School. His primary research interests are in environmental, energy, and public economics. He holds a PhD in Agricultural and Resource Economics from the University of Maryland, College Park; an MSc in Applied Mathematics from the University of Illinois, Urbana-Champaign; and both an MA and a BA in Economics from the University of Tokyo. His research has been published in peer-reviewed academic journals, including The Economic Journal and the Journal of Environmental Economics and Management.
Date & Time
July 22, 2025 (Tue.) 15:30 – 17:25
Venue
Meeting Room 1, 10th Floor, Building 3 Waseda Campus, Waseda University
Prospected Audience
Students, Graduate students, Faculty members, Research members, General participants
Language
English
Organizer
Waseda Institute for Advanced Studies (WIAS)
Co-Organizer
Research Institute for Environmental Economics and Management
WINPEC (Waseda Institute of Political Economy)
Registration
Pre-registration is required：Please register via the link below.
