The new government's pledge to accelerate reductions in greenhouse gas emissions may lead to higher subsidies for makers of solar cells, including Sharp Corp. and Kyocera Corp., while forcing utilities to pay premiums for solar power generated by consumers.
The Democratic Party of Japan's proposal to double the emissions cuts outlined by the ousted Liberal Democratic Party could lead to a carbon tax that has a severe impact on automakers, oil refiners and power producers, analysts and industry groups say.
The DPJ, which defeated the LDP in a landslide victory in Sunday's Lower House election, may boost incentives for renewable energy and penalize polluting industries to achieve its goal, analysts at Goldman Sachs Group Inc. and Deutsche Securities Inc. said.