82 T. WAKIYAMA ET AL.
Funds for solar PV at the city level in Japan are derived from the national
government and from regional governments and are distributed to the
commercial and household sectors as subsidies either directly or through
city governments (City of Yokohama 2011a ). The total fi scal budget for
renewable energy promotion activities in Yokohama was increased to
approximately 302 and 208 million JPY in 2010 and 2011, respectively^3
(City of Yokohama 2011b , 2010 ).
5.3 D ATA AND METHODOLOGY
5.3.1 DataIn this study, before assessing the economic effects of low-carbon investment
on renewable energy generation in Yokohama, we disaggregate the renewable
energy sectors (solar PV residential, solar PV non-residential, wind, hydro-
power, biomass, and others) from the electricity and construction sectors
using an input–output table with cost structure data drawn from Japan’s
Ministry of the Environment (MOE) andMETI. A detailed description of the
sector classifi cation after disaggregation is presented in the Appendix.
The following steps are employed to disaggregate the renewable energy
sectors from the electricity and construction sectors presented in the
input–output table. First, the percentage share of the installed capacity of
each renewable energy technology source. Second, the share of domestic
intermediate inputs and of value-added accounts for each renewable
energy technology source is determined using the METI cost structure.^4
Third, major input sectors for each renewable energy technology sources
are identifi ed using MOE data.^5 Fourth, we adjust shares of each major
input sector based on the MOE data. We then calculate renewable energy
investments in Japan and Yokohama using data drawn from the Ministry
of Internal Affairs and Communications, from the MOE, from the METI,
and from the city of Yokohama. This analysis derives the Leontief invested
matrix based on the 2005 Japan input–output table, and it bases the eco-
nomic impact analysis of low-carbon emissions on renewable energy. After
the extended version of Japan 2015 input–output table including renew-
able energy sectors is constructed, we apply the coeffi cients of renewable
sectors to Yokohama 2005 input out tables, and the investment data of
renewable energy in Yokohama city.