86 T. WAKIYAMA ET AL.
Furthermore, by measuring backward and forward linkages, sectors
within the whole economic structure can be classifi ed into four categories:
(1) key sectors (sectors with backward and forward linkages that are larger
than 1; (2) backward-oriented sectors (sectors with backward linkages that
are larger than 1 but with forward linkages that are less than 1); (3)
forward-oriented sectors (sectors with forward linkages larger than 1 but
with backward linkages that are less than 1); and (4) non-key sectors
(sectors with backward and forward linkages that are less than 1).
Our backward and forward linkage analyses show that within the
Japanese economic structure, wind, solar PV residence, and solar PV
non- residence electricity generation activities are categorized as backward-
oriented sectors. In other words, an increase in renewable energy electricity
generation investment can economically enhance the activities of input
sectors in Japan. However, major manufacturing industries such as the
petrochemical, motor vehicle, and accessory entities are categorized as key
sectors. Transport, commerce, business services, fi nancial services, and the
mining sectors are categorized as forward-oriented sectors (see Table 5.4 )
that are used as inputs for other sectors.
5.4.3 Economic Impact Assessment on Low-Carbon Investment
in Renewable Energy in YokohamaThe effects of investments in renewable energy on production levels serve
as important indicators of the economic system, as additional outputs are
Table 5.3 Top ten strongest forward linkage sectors
No. Row/column sector name Forward
linkage
1 Iron and steel 4.27
2 Transport 4.09
3 Commerce 3.66
4 Business services 3.30
5 Financial services 3.02
6 Mining 2.89
7 Non-ferrous metals 2.49
8 Information and communications 2.43
9 Other business services 2.28
10 Miscellaneous manufacturing products, with the exception
of reuse and recycling
2.19Source: Authors