Analysis of the Economic and Environmental Effects by the Offshore Wind Power Construction: In case of Kitakyushu City, Japan

Woojong Jung

doi:10.11114/bms.v1i2.1008

Abstract

The purpose of this study is to analyze the economic spillover effects and environmental impact of building offshore wind turbines on a local economy in Japan. Japan is facing a great turning point in its energy policy in the wake of the Great East Japan Earthquake, further increasing the importance of renewable energy. The offshore wind turbines experiment in Kitakyushu City is anticipated to showcase the potential of offshore wind power in Japan for the future and dynamize the local economy. As such, in this study, an economic and environmental impact assessment by Input–Output (I-O) analysis was conducted for the construction of the offshore wind turbines. The results show that building one hundred 3MW offshore wind turbine units will increase the induced production value by approximately 205.2 billion yen, equivalent to roughly 2.7% of Kitakyushu City’s total production value. Additionally, it is anticipated to create approximately 14 500 jobs. In terms of environmental impact, the increase in production is estimated to increase CO2 emissions by nearly 340 000 tonnes (an increase of approximately 2.1%). Accordingly, the environmental impact of building offshore wind turbines in Kitakyushu City is smaller than the economic impact, meaning that a sustainable between the economy and the environment can be found by the diffusion of renewable energy.

Highlights

The Framework Proposal for the Long-term Energy Supply-Demand Outlook sets, premised of safety, specific policy goals concerning the 3E+S policy: (1) increasing the self-sufficiency rate above the level before the Great East Japan Earthquake, (2) lowering electricity costs from the current level, and (3) leading global efforts by pursuing Greenhouse Gas (GHG) emission reduction goals that match those for Western countries
The offshore wind turbines experiment in Kitakyushu City is anticipated to showcase the potential of offshore wind power in Japan for the future and dynamize the local economy
The results show that building one hundred 3MW offshore wind turbine units will increase the induced production value by approximately 205.2 billion yen, equivalent to roughly 2.7% of Kitakyushu City’s total production value

Summary

Introduction

The Framework Proposal for the Long-term Energy Supply-Demand Outlook sets, premised of safety, specific policy goals concerning the 3E+S policy: (1) increasing the self-sufficiency rate above the level before the Great East Japan Earthquake (approx. 25%), (2) lowering electricity costs from the current level, and (3) leading global efforts by pursuing Greenhouse Gas (GHG) emission reduction goals that match those for Western countries. The Framework Proposal for the Long-term Energy Supply-Demand Outlook sets, premised of safety, specific policy goals concerning the 3E+S policy: (1) increasing the self-sufficiency rate above the level before the Great East Japan Earthquake 25%), (2) lowering electricity costs from the current level, and (3) leading global efforts by pursuing Greenhouse Gas (GHG) emission reduction goals that match those for Western countries. There is the issue of the connection limit for variable electricity sources such as wind power and solar PV. At the Subcommittee meeting, many pointed out that it is important to promote carbon-free renewable electricity sources, their impact on electricity tariffs needs to be minimized (Hoshi, 2015; Frankl, 2013; Murakami, 2014; The Institute of Energy Economics, Japan, 2014)

Objectives

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Conclusion