78 T. WAKIYAMA ET AL.
awareness of sustainable energy supplies and energy security has increased
in Japan. Through the development of sustainable and resilient energy
sources, the role of renewable energy has been highlighted (Huenteler
et al. 2012 ; JETRO 2013 ). In this regard, the Fukushima nuclear acci-
dent resulted in the following key lessons. First, renewable energy sources
are not only low emission sources but also decentralized energy sources
that allow for energy to be generated in various locations, that have fewer
environmental impacts, and that improve energy security levels by
increasing the share of domestic energy supplies (Panwar et al. 2011 ;
IPCC 2012 ). Second, energy reduction schemes alone cannot reduce
CO 2 emissions triggered by exogenous shocks (Wakiyama et al. 2014 ).
One notable policy transition that occurred after the Fukushima accident
involved the introduction of feed-in tariff (FIT) schemes. FIT schemes
were introduced in July 2012, and the installed capacity of solar photo-
voltaics (PV) in particular increased to 11.9 GW from July 2012 to July
2014.^1
However, to further accelerate renewable energy use in Japan, it is
important to identify the effects of increased renewable energy use. An
assessment of the effects of investments in renewable energy will help
policymakers and other stakeholders examine the potential of renewable
energy expansion while identifying whether such expansion may have
economic, social, and environmental benefi ts by enhancing economic
activities, reducing CO 2 emissions, creating job opportunities, and supply-
ing clean energy (Blasejczak et al. 2014 ; Caldes et al. 2009 ; Lambert and
Silva 2012 ).
Renewable energy installations must be designed for local contexts
because installed capacities in a given area can change depending on locations,
land regulations, negotiations with landowners, and geographic conditions
(Kanagawa 2012 ). In renewable energy development, decisions are made at
the local or individual scale and thus differ from processes employed for
large-scale power generation entities such as fossil power stations, which are
owned by private electricity companies (Burtonb and Hubacek 2007 ;
Swofford and Slattery 2010 ). Not only electricity companies but also indi-
viduals and municipal governments can serve as renewable energy suppliers.
This chapter examines the economic impact of investments in renewable
energy that may be expected to facilitate low-carbon transitioning and devel-
opment at the city level based on a case study conducted in Yokohama. This
chapter does not assess the environmental and social effects of renewable
energy investments, but instead assesses the economic impacts of renewable