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Economic Effects of Installing Renewable Energy in the Tohoku Region:Analyses of mega solar and wind power generation using the interregional IO table (Japanese)

Listed author(s):
  • ISHIKAWA Yoshifumi
  • NAKAMURA Ryohei
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    This study investigates the regional economic recovery effects as well as the mitigation effect of CO₂ in monetary terms from installing mega solar and wind power generation systems in the Tohoku region, in particular, Iwate, Miyagi, and Fukushima prefectures which were substantially damaged by the March 11, 2011 earthquake.By considering the possible amount of renewable energy in the three areas of the Tohoku region, we calculate the regional economic effects in terms of income and product value as well as the mitigation of CO₂ based on scenarios for installing renewable energy policy.The simulation analyses are conducted using the interregional IO table from 2005.We found that a tradeoff between the maximization of aggregate economic effects across regions and the maximization of the Tohoku region's economic effects, which leads to a correction of interregional economic disparities caused by the earthquake and the ensuing tsunami. Installing proper renewable energy size in the region, will depend upon policy judgment.From simulation results, in order to correct the interregional economic disparities, renewable energy generation in the Tohoku region should be exported to the Kanto region rather than used for domestic consumption. On the other hand, the credit created from CO₂ mitigation helps correct the interregional economic disparities, in particular, the Tohoku region, even if domestic consumption of renewable energy occurs.

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    Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Policy Discussion Papers (Japanese) with number 12014.

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    Length: 30 pages
    Date of creation: Jul 2012
    Handle: RePEc:eti:rpdpjp:12014
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