Input-Output Analysis for Installing Renewable Energy Systems

Abstract

Renewable energy facilities have been installed in many regions, because of their possibility to be an alternative to fossil fuels for mitigating global warming. Besides the profitability of renewable energy businesses, indirect economic effects of installing renewable energy facilities should be clarified. This study examines the possibility that the renewable energy facilities give renewed impetus to regional economic progress. The economic effects are analysed with input-output techniques in a rural area in Japan. As a consequence, both positive and negative effects on the rural economy are derived. In addition, we will focus on the changes in sectors such as construction, business services, banking, etc. as a result of economic activities for renewable systems. The business benefits of renewable energy system are discussed.