Finance And Economics: Bright idea; Daylight-saving time in Japan

Abstract

Japan stands virtually alone among rich countries in not using daylight-saving time (DST), or summer time. John Alkire of Morgan Stanley believes that adopting DST would mean a new dawn for the Japanese economy. One extra hour of sunlight every evening for seven months would boost domestic consumption, as people leave work for bars, restaurants, shopping and golf.

A ray of hope for the land of the rising sun

JAPAN'S economy has been in a funk for most of the past two decades. The country has tried fiscal stimulus. It pioneered quantitative easing. Yet still the outlook remains dark. Might giving the public an extra hour of sunlight help?

The 27 countries in the European Union will set their clocks back for winter by one hour on October 31st; Americans do so on November 7th. Japan stands virtually alone among rich countries in not using daylight-saving time (DST), or summer time. The country did so between 1948 and 1951 during the American occupation, but stopped after General MacArthur left Tokyo.

John Alkire of Morgan Stanley believes that adopting DST would mean a new dawn for the Japanese economy. One extra hour of sunlight every evening for seven months would boost domestic consumption, as people leave work for bars, restaurants, shopping and golf. Summer time is credited with reducing traffic accidents and crime; boosting energy efficiency as people use less lighting and heating; and even improving health as people are radiated with vitamin D. "The best part is that it doesn't cost anything," chirps Mr Alkire. "It's a real fiscal stimulus without any money."

Adopting DST would increase Japan's GDP by more than {Yen}1.2 trillion (around $15 billion) annually, according to the Dai-Ichi Life Research Institute. The Japan Productivity Centre, another research outfit, reckons it could generate 100,000 jobs. Public approval for DST is growing, from 40% in the 1990s to around 60% today. Heizo Takenaka, a former cabinet minister, says it nearly passed in 2005 but fell victim to bureaucratic infighting. The bigger problem, says Mr Alkire, is that schools and firms own students' and employees' time. Extra daylight is less help if people are stuck indoors.