Abstract
Renewable energy (RE) creates opportunities for sustainable, socioeconomic development of local communities as fossil fuel-based energy imports are substituted with local RE sources. Established methods such as input–output (I/O) analysis face limitations when assessing these regional effects due to insufficient model integration of RE sectors. For Germany, regional value-added modeling based on RE value chain analysis is recognized as a viable alternative approach. The international transferability of this model is tested for the case of Japan. The model of regional value-added developed by the Institute of Ecological Economy Research (IOW model) is adapted to Japan for five representative RE technologies. The estimate of regional value-added for Japan is based on standardized, technology-specific value chain structures with Japan-specific cost and revenue data for individual RE technologies, and applies Japanese statistical sources and tax schemes. The transferability of the IOW model to other countries requires modifications to reflect country-specific industry structures, tax codes, and policy frameworks. The comparative analysis between Germany and Japan reveals substantial differences in the economics of individual RE technologies and the distribution of regional value-added. RE has a comparable high potential for regional economic development in Japan but depends largely on local ownership of RE sources. The IOW model offers a powerful tool for regional planners and policymakers to analyze and capture the potential of RE for regional economies. Its application for a comparative analysis between countries provides indications to enhance the effectiveness of RE-related policies for regional economic development.
Highlights
Renewable energy (RE) creates opportunities for sustainable, socioeconomic development of local communities as fossil fuel-based energy imports are substituted with local RE sources
As the legal depreciation period differs between Japan (17 years) and Germany (20 years), the data have been standardized for a depreciation period of 20 years to make them comparable
Can be concluded that the regional value-added modeling approach offers a powerful tool for regional planners and policymakers to analyze and capture the potential of RE for regional economies
Summary
Renewable energy (RE) creates opportunities for sustainable, socioeconomic development of local communities as fossil fuel-based energy imports are substituted with local RE sources Established methods such as input–output (I/O) analysis face limitations when assessing these regional effects due to insufficient model integration of RE sectors. The review covers more than 30 studies worldwide from 2003 to 2011 and compares them along a set of criteria such as the scope of impacts (e.g., direct, indirect, induced effects), the type of impulses (e.g., investment, trade, household consumption), the required type of input data, or the extent of dynamic effects that are considered (e.g., price and productivity effects, structural changes, scenarios) These modeling approaches are classified into gross models and net models. They typically apply less complex analytical models such as employment factor analysis and focus on individual RE technologies or single regions and countries
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
