Low Carbon Urban Infrastructure Investment in Asian Cities

© The Editor(s) (if applicable) and The Author(s) 2016 7
J. Jupesta, T. Wakiyama (eds.), Low Carbon Urban Infrastructure
Investment in Asian Cities, Cities and the Global Politics of the
Environment, DOI 10.1057/978-1-137-59676-5_2

CHAPTER 2

Abstract The chapter identifies the risks and costs related to renewable
energy investments in general and then analyses the risks and returns asso-
ciated with renewable energy investment using Yokohama as a case study.
The role of the government in setting clear policy targets, in providing
financial support, and in introducing new and innovative policies proves
essential to minimizing renewable energy investment risk. This chapter
qualitatively and quantitatively examines the status of policies and financ-
ing policies used to promote renewable energy. As part of a financing
study, this chapter explores the effectiveness of feed-in tariff (FIT) systems
and supplemented tax policies.

2.1 IntroductIon

Renewable energy technologies represent a key instrument for providing
sustainable energy services and for contributing to the reduction of CO 2
emissions (Monkelbaan 2013 ; UNEP/GRID 2009 ). Since the Kyoto
Protocol was signed in 1992, various policies for promoting the installa-
tion of renewable energy have been introduced internationally (Lipp 2007 ;
Solangi et al. 2011 ). Renewable energy sources increase the availability and
reliability of domestic energy supplies, limit price volatility and the foreign

Renewable Energy Investment Risk Analysis

for Low-Carbon City Development

in Yokohama

Takako Wakiyama, Ambiyah Abdullah and Joni Jupesta