Cool Biz is hurting Japan’s economy

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    Cool Biz

    Economist Takashi Kadokura has investigated Japan’s “Cool Biz” idea and found that forcing employees to work in hot offices reduces their productivity:

    “We couldn’t concentrate on our work,” said Kadokura, 37, then an economist for Dai-ichi Life Research Institute in Tokyo. “The air conditioning was set at 28 degrees (82 degrees Fahrenheit) and we weren’t allowed to change it.”

    The experience led Kadokura to question the Japanese government’s “Cool Biz” policy, which recommends companies set air conditioners at 28 degrees to reduce carbon emissions. Kadokura says sweaty offices lead to lower productivity, and estimates the policy reduced economic growth in 2008 by 653 billion yen ($6.9 billion) or 0.13 percent of Japan’s gross domestic product of 497.4 trillion yen.

    A classic link for those who are new to the whole Cool Biz thing: The Prisoner’s Dilemma of Cool Biz.

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