Japan faces a unique energy challenge. As a densely populated island nation with limited natural resources like coal, oil, and natural gas, the country struggles to meet its energy needs sustainably. While nuclear power was once a promising solution, the Fukushima disaster significantly diminished public trust in this energy source.
With limited space for wind and solar farms, Japan relies heavily on importing energy. Hydrogen has emerged as a viable alternative, with Japan importing it from Australia. However, Australia’s hydrogen production involves coal, effectively exporting pollution from Japan to Australia—a trade-off the Japanese government seems willing to accept.
To promote hydrogen adoption, the government heavily subsidizes hydrogen-powered vehicles. For instance, the Toyota Mirai, priced at approximately $45,000, incurs a $70,000 loss per unit for Toyota. Despite this, Japan sees hydrogen cars as a practical solution due to challenges like the lack of private parking spots with charging outlets and the widespread availability of trains.
Electric cars, while globally popular, haven’t gained the same traction in Japan. Historically, Japan embraced efficient hybrids, such as Toyota’s pioneering RAV4 EV launched in the 1990s. Globally, hybrid sales have kept pace with electric vehicle (EV) growth, but without the same level of enthusiasm.
The resurgence of electric cars in the West and China stems largely from government subsidies. For example, China invested heavily in EVs to combat severe urban air pollution caused by coal use. By 2018, China led the world in EV production and sales. Conversely, Tokyo, lacking a significant pollution crisis, did not face similar pressures.
In the United States, Tesla owes much of its success to over $5 billion in subsidies, including $2 billion in federal tax rebates. A late amendment to a subsidy bill increased caps to $2 billion per company rather than the entire industry, benefiting Tesla and GM significantly. Similarly, European nations like Finland and Norway implemented generous incentives, making EVs far more affordable.
While electric cars thrive on subsidies worldwide, Japan’s focus remains on hydrogen-powered vehicles. This divergence highlights how regional energy challenges and priorities shape technological adoption.
Reference- Forbes, Inside EVs, Clean Technica, Futurism, Car&Driver, The Verge, Electrek