[en] Why are Japanese utilities installing so much coal fuel capacity when they face a cost on carbon? The question has a particularly sharp edge because Japan has one of the most efficient power generation and transmission systems in the world. An easy way for a country to reduce greenhouse emissions is to improve the efficiency of its energy sector, but because Japan's is already so efficient it will be very expensive for Tokyo to reduce its domestic emissions. Debate still rages about the effect of Japanese carbon policy on the price of coal, with many analysts predicting that Japan would reduce the use of fossil fuels in order to meet its Kyoto target, leading to reduction in import demand