ECONOMIC IMPACT ASSESSMENT ON LOW-CARBON INVESTMENT... 81Depending on which policies are introduced or on how such policies can
be designed to promote particular renewable sectors (whether the focus is
on solar PV, wind, or biomass), the effects of policy implementation and
enforcement on low-carbon development will vary. For the promotion of
renewable energy in Japan, subsidy policies and policy interventions for
technological diffusion have been implemented (Suwa and Jupesta 2012 ).
As noted above, renewable energy sources can be expected to increase
local revenues from the economic effects of investments and energy
supplies. Several policies and instruments have been introduced to enhance
the deployment of renewable energy at the city level in Japan. Under the
Act on the Promotion of Global Warming Countermeasures, which was
enacted in 1998, local governments are required to create action plans
regarding global warming countermeasures (City of Yokohama 2014 ).
Yokohama is a government ordinance–designed city with 3.7 million
inhabitants, which is the second largest population in Japan after Tokyo.
CO 2 emissions in Yokohama increased by 5.197 million t-CO 2 in 2013
from 1990 levels due to an increase in population and per capita CO 2
(City of Yokohama 2015 ). The commercial and household sectors gener-
ate the largest share of CO 2 emissions in Yokohama (4.83 million t-CO 2
and 5.04 million t-CO 2 , respectively).
Yokohama established the Regional Promotion Plans for Combating
Global Warming in 2001. Simultaneously, to boost renewable energy
investment, various funding mechanisms were created. An early initiative
that was designed to increase renewable energy installation capacities in
Yokohama was a locally sited fund for wind power generation. In 2007, a
wind power plant called the “Hama Wind Power” plant was created
through considerable investment efforts. The upfront costs for the
construction of the wind power plant were fi nanced with Ministry of
Economy, Trade, and Industry (METI) subsidies (0.2 billion JPY) and
through the issuance of municipal bonds (0.28 billion JPY).^2 Total
construction costs reached approximately 0.5 billion yen, and operation
costs reached approximately 50 million yen in 2009. After the design for
the wind power plant was developed, Yokohama called for collaborative
support from companies to fi nance and establish the wind power plant. In
2006, a community-based bond called the “Hama windmill bond” was
created. Community organizations and local companies participate in
publicly issued bond investments, which typically involves collaboration
among citizens, businesses, and the government as a result.
In the case of solar PV, the installed capacities of public facilities in
Yokohama have increased since 2009 with an increase in public fi nance.