Long-term transformation of the economy-environment nexus in Japan: a historical analysis of environmental institutions and growth regimes based on the regulation theory

Now that ecological crisis is evident, the issue of environment cannot be neglected in discussing growth. Based on the regulation theory, the author has proposed a theoretical framework to analyze the relationship between environmental policies and economic growth (Okuma Evol Inst Econ Rev 9: 141-168, 2012). To advance research through this approach, this paper conducts a historical analysis on such a relationship in Japan. The "economy-environment nexus" is analyzed as one of the "institutional forms," a key concept of the theory. Environmental costs are estimated as key indices. An econometric analysis using a variant of the Kaleckian growth model is conducted to analyze their effects on the growth regimes. Combining these results, we periodize and specify the economy-environment nexus in Japan, which includes (1) the 1960s to around 1970, with intensive accumulation supported by extensive consumption of environmental resources; (2) the 1970s to the early 1980s, with strict regulations formulated through conflicts, which was supportive to growth; (3) the 1990s to the early 2000s, with institutions of voluntary and flexible nature under weaker actors; and (4) after 2008, with some policies aiming at green growth as a common agenda of economic and environmental actors. This historical recognition has implications on future policies.