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Cost-benefit analysis of a green electricity system in Japan considering the indirect economic impacts of tropical cyclones

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  • Esteban, Miguel
  • Zhang, Qi
  • Longarte-Galnares, Gorka

Abstract

Global warming is likely to profoundly influence future weather patterns, and one consequence of this is the likelihood of an increase in tropical cyclone intensity. The present paper presents a cost-benefit analysis of introducing significant amounts of green energy in the electricity system in Japan in the light of the economic damage that an increase in tropical cyclone intensity could have on GDP growth between 2010 and 2085. Essentially the passage of a tropical cyclone will result not only in physical damage but also on a decrease in economic productivity due to precautionary cessation of the economic activity, which has an effect on GDP growth. By comparing the economic performance of different electricity system scenarios with the indirect economic damage of tropical cyclones from 2010 to 2085, based on the yearly economic data of green electricity, fossil fuel, GDP and population, it can be seen that the green scenarios are generally a cost-effective way of mitigating the effects of these weather systems, despite the large amount of initial investments necessary.

Suggested Citation

  • Esteban, Miguel & Zhang, Qi & Longarte-Galnares, Gorka, 2012. "Cost-benefit analysis of a green electricity system in Japan considering the indirect economic impacts of tropical cyclones," Energy Policy, Elsevier, vol. 43(C), pages 49-57.
    • Handle: RePEc:eee:enepol:v:43:y:2012:i:c:p:49-57
    DOI: 10.1016/j.enpol.2011.12.001
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    References listed on IDEAS

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    Cited by:

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    2. Choi, Gobong & Huh, Sung-Yoon & Heo, Eunnyeong & Lee, Chul-Yong, 2018. "Prices versus quantities: Comparing economic efficiency of feed-in tariff and renewable portfolio standard in promoting renewable electricity generation," Energy Policy, Elsevier, vol. 113(C), pages 239-248.
    3. Portugal Pereira, Joana & Troncoso Parady, Giancarlos & Castro Dominguez, Bernardo, 2014. "Japan's energy conundrum: Post-Fukushima scenarios from a life cycle perspective," Energy Policy, Elsevier, vol. 67(C), pages 104-115.
    4. Zobeidi, Tahereh & Komendantova, Nadejda & Yazdanpanah, Masoud, 2022. "Social media as a driver of the use of renewable energy: The perceptions of instagram users in Iran," Energy Policy, Elsevier, vol. 161(C).
    5. Hartmann, Patrick & Apaolaza, Vanessa & D'Souza, Clare & Echebarria, Carmen & Barrutia, Jose M., 2013. "Nuclear power threats, public opposition and green electricity adoption: Effects of threat belief appraisal and fear arousal," Energy Policy, Elsevier, vol. 62(C), pages 1366-1376.

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