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Analysis of inter-regional effects caused by the wide-area operation of the power grid in Japan: an implication for carbon pricing schemes

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  • Satoshi Nakano

    (The Japan Institute for Labour Policy and Training)

  • Ayu Washizu

    (Waseda University)

Abstract

In this research, we examine the socioeconomic impact of carbon pricing (CP) mechanism-related energy policies under the technical constraints of Japan. For this, we have created the Inter-Regional Input–Output Table for a Next Generation Energy System (IONGES) in 2030, considering these technical constraints. Namely, we created three Inter-Regional IONGESs with different assumptions for the wide-area operation of the power grid. The results show that the technical constraints of the power grid influence the interregional distribution of renewable energy. Top ten regional renewable energy sectors (TOP10), which has a large production scale, account for approximately 54% of renewable energy generation, which was found to be biased. From the viewpoint of consumers in each region, we analyzed the share of the electricity cost required to support their consumption. If the CP mechanism is implemented under the technical constraints of the current power grid, consumers in each region will be impacted unequally. However, it was found that such inequality will be solved under the wide-area operation of the power grid.

Suggested Citation

  • Satoshi Nakano & Ayu Washizu, 2021. "Analysis of inter-regional effects caused by the wide-area operation of the power grid in Japan: an implication for carbon pricing schemes," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(3), pages 535-556, July.
    • Handle: RePEc:spr:envpol:v:23:y:2021:i:3:d:10.1007_s10018-020-00274-7
    DOI: 10.1007/s10018-020-00274-7
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    References listed on IDEAS

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