Economic impacts of Japan’s renewable energy sector and the feed-in tariff system

using an input–output table to analyze a next-generation energy system

Satoshi Nakano, Sonoe Arai, Ayu Washizu

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

We construct an input–output table to analyze a next-generation energy system. Based on this table, we estimate the effect of using renewable energy on Japan’s economic structure as well as the feed-in tariff’s contribution to the cost structure. The results clearly show that, induced by demand, existing power generation options and the production of existing passenger vehicles would be reduced and replaced by electric vehicles (EVs), plug-in hybrid vehicles (PHVs), and the renewable energy sector. Furthermore, the demand for production in the supply chain of these sectors would change. While the feed-in tariff seems to benefit the overall Japanese economy, the benefits are not divided equally among the sectors because the positive effect of the feed-in tariff system is greater than the negative effect in energy and energy-intensive industries, while the negative effect is greater in the service sectors, on which the cost of the feed-in tariff system is levied. However, renewable-energy-induced service activities, such as research and business services, are becoming more pervasive. Therefore, this inequality may be resolved in the long term and could be assisted by policies that accelerate this change.

Original languageEnglish
Pages (from-to)1-26
Number of pages26
JournalEnvironmental Economics and Policy Studies
DOIs
Publication statusAccepted/In press - 2016 May 3

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economic impact
energy
business service
electric vehicle
service sector
economic structure
power generation
cost
tariff
Renewable energy
Tariffs
Economic impact
Energy sector
Energy systems
Japan
effect
industry
Energy

Keywords

  • Economic structure
  • Feed-in tariff
  • Input–output table
  • Renewable energy

ASJC Scopus subject areas

  • Management, Monitoring, Policy and Law
  • Economics and Econometrics

Cite this

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