Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/222800 
Year of Publication: 
2019
Series/Report no.: 
ADBI Working Paper Series No. 1033
Publisher: 
Asian Development Bank Institute (ADBI), Tokyo
Abstract: 
The Great East Japan Earthquake (GEJE) and Fukushima nuclear disaster that occurred in 2011 gave a sharp reminder to Japan's energy security to reconsider the reduction of nuclear power dependence with a better energy mix. We use a recursive CGE model based on Japan's renewable energy input-output model to analyze the energy composite of power generation and consumption to investigate cost-effective policy incentives to achieve an optimal energy mix with the goal of reducing the nuclear power dependence to less than 5% within 20 years. Moreover, we create scenarios of (1) nuclear power decommission, (2) renewable energy promotion, and (3) virtual power plant (VPP) implementation with public R&D expenditure and power infrastructure investment. The simulation results show that renewable energy could gradually replace nuclear power with capital-use subsidies. Most important of all, the implementation of VPPs could reduce both the fiscal costs and social costs of promoting renewable energy while facilitating power generation.
Subjects: 
recursive CGE model
renewable energy
Japan
optimal energy mix
JEL: 
C6
Q4
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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