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Figure 20.5 Factors contributing to change in energy R&D expenditure in the Japanese manufacturing industry, 1974-94

and 1980s, through a policy of encouraging technological innovation in energy efficiency could provide useful clues for other countries and regions.

In light of this, the systems options for the rational use of energy on the global scale have become crucial. The options can be identified to find the most effective combination of energy efficiency improvement and fuel switching (and also carbon sequestration in the future). The complexity of the global environmental consequences results from the heterogeneity of economic, industrial, geographical, social and cultural conditions of each respective country or region. This implies that we cannot expect any uniform solution at the global level. Nevertheless, we can expect to uncover many opportunities and comparative advantages, in some of which every country/region can share. It is hoped that we can also anticipate some broad-based systems options (for example, decarbonization, dema-terialization) and the possibility of realizing a maximum multiplier effect by synchronizing comparative advantages in a systematic way. Given that the global environmental issue is a problem common to all countries of the world, we should seek ways of maximizing the multiplier effect. A comprehensive systems approach is therefore critical.

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