Analysis of the Impact of a Small Hydropower Generation Project on the Local Economy: The Case of Gokase Town, Miyazaki Prefecture

Abstract

Since the Fukushima Daiichi nuclear disaster that occurred in the wake of the Great East Japan Earthquake, the use of renewable energy has become one of the major pillars of Japan's energy strategy. The Japanese Government has therefore introduced a feed-in tariff policy for renewable energy in order to promote its use. Among the various types of renewable energy, one type that has attracted much attention is small hydropower because it generates low environmental impact, offers highenergy efficiency, has an abundance of potential sites, and can operate for long periods. In many cases, small hydropower generation is used for the production for local consumption, and thus local communities often take the initiative to promote plans for establishing small hydropower plants. This study selected a community development project utilizing small hydropower plants in Gokase Town in Miyazaki Prefecture. Applying an analytical method, this study measures the economic and social impacts of the small hydropower plant project in the town.