Low Carbon Urban Infrastructure Investment in Asian Cities

ECONOMIC IMPACT ASSESSMENT ON LOW-CARBON INVESTMENT... 87

expected to be generated in Yokohama’s economy through additional
economic activities involving renewable energy. In this study, we employ
simple accounting multiplier analyses using a simulation scenario that
refl ects changes in low-carbon investments in renewable energy in Yokohama
from 2005 to 2011, which is referred to as the output multiplier.
The results reveal that 0.3 million JPY of the additional economic
impacts in Yokohama in 2006 from the base year of 2005 is associated
with investments in renewable energy (Table  5.5 ). There was an increase
of 2.4 million and 3.4 million JPY in 2010 and 2011, respectively, in
relation to 2005 levels. One of the reasons of economic impacts can be
observed from transitions of city planning and strategies of Yokohama city
since 2008. In 2008, Yokohama was selected as a model environmental
city under the national environmental model city framework. That same
year, the Act on the Promotion of Global Warming Countermeasures was
revised, and under the Act, local authorities were obligated to create local
government action plans for combating global warming. In 2009,
Yokohama developed a mitigation target in line with the national targets.
As part of a short-term goal to disseminate solar power generation and
solar heating systems under the Yokohama global warming action plan by
2020, the city created a solar power generation installation target of 5 %
for single-family houses to generate 94,900 kW, which may also contrib-
ute to a reduction of 43,000 tCO 2 and of 8 % for offi ces by installing
17,000 kW that may contribute to a reduction of 6700 tCO 2 (City of
Yokohama 2014 ). From the analysis results, it can inferred that the effects
of actions taken in 2009 appear to have increased investment in renewable
energy in 2010, resulting in an increase in outputs from 1.7 to 2.4 million
JPY.  We also assume that an increase in renewable energy investment
economic impacts in 2011 (from 2.4 to 3.4 million JPY) also appeared as

Table 5.4 Four sector categories based on backward and forward linkages

No. Key sectors Backward-oriented sectors Forward-
oriented sectors

1 Petrochemicals Cars or vehicles Transport
2 Motor vehicle bodies
and accessories

Internal combustion engines for

motor vehicles and parts

Commerce

3 Iron and steel Electricity (wind) Business services
4 Non-ferrous metals Electricity (solar PV – residence) Financial services
5 Metal products Electricity
(solar PV – non-residence)

Mining

Source: Authors