Drivers of social equity in renewable energy at the municipal level: the case of local Japanese energy policy and preferences

ABSTRACT

Recent research has allowed us to quantify the costs and benefits of adopting renewable energy in specific municipalities, but how do these outcomes vary among communities at the national scale? This study uses survey responses from 47 Japanese municipalities to model these impacts and identifies key technological, social, and demographic factors that shape which communities benefit more from the renewable energy transition. On average, introducing renewable energy improves social equity, any financial burden on electricity prices is born most by wealthier residents, not the poor, and towns are predisposed to benefit from renewables no matter the amount introduced. To improve these impacts, towns can increase the amount of solar they host, or they can adjust the amount of CO2 emissions, PM emissions, tax revenue, jobs gained, or unpopular renewable power plants in their town. However, preferences and demographics matter as well. Age, education, and local preferences in favor of employment and community development all significantly relate to equity potential outcomes. Policymakers should consider adjusting their local energy priorities using these levers if they hope to engineer a renewable energy transition that is both positive and popular for their constituents.     

Local Transport Problems and Possible Solutions: Comparing perceptions of residents,elected members,officers and organisations

It is generally accepted that the current growth in personal car use poses a serious threat to local communities and the environment, and that radical changes in transport policy are needed. In order for local authorities to develop acceptable sustainable transport options, it will be necessary that they have a clear view of the attitudes and perceptions of various groups in their community. This research compared the views of elected members and officers with those of residents and organisations in relation to the local transport situation and the use of car travel reduction measures. It was found that the views of elected members and officers reflect those of residents rather well. The views of local organisations, however, were different. Organisations were, in particular, more negative about policy measures that aim to reduce car use in the town centre. They also attached more importance to the viability of the local economy than the other respondents. However, they did agree with the other groups that the quality of life in the community would improve if there was less traffic. The consequences of these findings for local transport planning are discussed.     

Climate justice and energy: applying international principles to UK residential energy policy

This paper draws on climate justice principles developed in the context of international negotiations between national governments to assess the distribution of carbon reduction roles between different actors involved in residential energy use within the UK. In so doing, it aims to provide a new understanding of equity aspects of current residential policy and to highlight opportunities for more effective and equitable policy. The paper uses three criteria: rights and corresponding duties; mitigation responsibilities and capabilities. It applies them systematically to assess the roles of five key actors involved in residential energy use in the UK. The assessment finds a suboptimal distribution of actors’ duties, responsibilities and capabilities and roles and discusses whether and how a more effective and fair allocation of outcomes, in terms of carbon reduction and fuel poverty, could be achieved. In particular, it raises questions about whether the right actors are being legally obliged or incentivised to deliver energy efficiency improvements, and suggests that particular actors – local authorities and community groups – are under-used and require greater government support with capability. The paper represents the first use of international climate justice frameworks to investigate residential energy policy within a country.     

Participatory and multi-level governance: applications to Aboriginal renewable energy projects

As provinces across Canada seek to diversify their domestic electricity supply and cope with the accelerating effects of anthropogenic climate change, new models of sustainability-focused economic development are being pursued. One critically important emerging paradigm involves First Nation (a Canadian term for indigenous) collaboration and leadership in renewable energy projects. In this comparative case study analysis, we consider two different governance approaches pursued in distinct renewable energy project contexts: the clean energy projects of the Ojibway Pic River First Nation band in northwestern Ontario and the NaiKun Offshore Wind Project proposed in the ocean territory of the Haida Nation off the coast of British Columbia (BC). Focusing on themes of participation and multi-level governance, the case studies highlight the importance of authority and control in decision processes, the primacy of ensuring that scale and quality of design are carefully scoped, and the shaping role of inclusiveness in planning for wholly sustainable energy futures. Taken together, these cases illustrate that fluid governance arrangements which exploit the particular capacities of each actor may give rise to trust that ultimately forms the foundation of a co-produced model of renewable energy governance. We argue that while collaboration might aim to be inclusive of all interested actors, it is important to consider the extent to which a project design might sufficiently incorporate a community's long-term vision. We conclude that truly sustainable renewable energy development requires a project design that reflects community values, incorporates community control, and incentivises indigenous ownership.     

Financing energy transformation: The role of renewable energy equity indices

The support of financial markets for the transformation of the energy system to a low carbon society seems critical for its success. But will they support this transformation on the basis of market incentives alone? This study analyses how equity indices that try to capture renewable energy investments perform compared to conventional benchmark indices. Especially financial market investors—such as pension funds, insurance companies, and mutual funds—use these to assess and guide their renewable energy investments. As such, we take the perspective of financial market participants, which mainly only indirectly invest in renewable energy. We also analyze whether renewable energy indices are to be regarded as an example of market environmentalism. We find that the renewable energy indices’ risk-adjusted return is very poor and suggests renewables is not a financially attractive portfolio investment yet. We also argue that renewable energy equity indices can be regarded as an example of market environmentalism, especially with respect to commodification and frame-shifting.     

Local energy governance in post-Fukushima Japan: a survey of citizen willingness to participate in local energy policy deliberations

Employing a social survey, this paper examines citizen attitudes towards local energy governance in the aftermath of the Great East Japan Earthquake and the subsequent nuclear power plant accident. The survey found that public comment and random sampling citizen deliberation led to a greater willingness to participate in discussions of municipal heating and power (energy) policy for a resilient community than did conventional citizen committee membership. The former mechanisms provided opportunities for individuals with considered viewpoints to participate in a public dialogue on energy and environment issues in post-disaster Japan. Respondents who did not have clear ideas about a roadmap for nuclear power generation showed a lower willingness to participate in local energy policy formulation processes.     

Local voices on renewable energy projects: the performative role of the regulatory process for major offshore infrastructure in England and Wales

There is currently a considerable emphasis on delivering major renewable energy infrastructure projects. Such projects will have impacts on local communities; some impacts may be perceived as positive but others will be viewed more negatively. Any just regulatory process for considering and permitting such infrastructure will need to heed the concerns that local communities voice. But what counts as a local voice? In this paper it is argued that the regulatory process plays a performative role, constructing what counts as a local voice. Furthermore, this has consequences for how regulatory deliberations proceed and the outcomes of regulatory processes. The empirical basis for this argument is a study of major offshore renewable energy infrastructure in England and Wales and the way that it is regulated through a specific regime – the Nationally Significant Infrastructure Projects (NSIPs) regime established by the Planning Act 2008. Through a detailed study of eight projects that have passed through the regime, the analysis unfolds the way that the voices of local residents, local businesses, local NGOs and local authorities are constructed in the key boundary object of the Examining Authority’s report; it then draws out the implications for the mitigation measures that are negotiated. The research suggests that what counts as a local voice is constrained by how the performative role of the NSIPs regulatory regime differentiates between interests and suggests that new ways of giving voice to local people are required.     

Cracking the Achilles’ heel of energy performance contracting projects: the credit risk identification method for clients

ABSTRACT

A credit risk identification model is established to examine the credit status of Energy performance contracting (EPC) project clients (i.e., energy-using companies) in China based on rough set theory. The model is verified with data from 120 listed companies at different times. Study shows that lack of credit is one of the main obstacles to the implementation of EPC projects, and information asymmetry is the main reason for this lack of credit among potential clients in China. The credit risk identification method based on rough set theory can make up for the shortcomings of existing EPC projects in terms of credit risk identification, including redundant information and indicators, and unclear decision rules. Credit risk identification indicators of clients are dynamic. The research results can help energy service companies (ESCOs) determine the credit status of clients, facilitate cooperation between ESCOs and clients, and help explain the various dynamics of clients’ credit risk identification indicators over time.     

(Not) talking about justice: justice self-recognition and the integration of energy and environmental-social justice into renewable energy siting

Renewable energy often provokes heated debate on climate change, energy security and the local impacts of developments. However, how far such discussions involve thorough and inclusive debate on the energy and environmental-social justice issues associated with renewable energy siting remains ambiguous, particularly where government agendas prioritise renewable energy and planning systems offer limited opportunities for public debate on value-based arguments for and against renewable energy developments. Using the concept of justice self-recognition, we argue for greater attention to public discussion of the justice dimensions of renewable energy to assist in developing mechanisms to integrate distributive and procedural fairness principles into renewable energy decision-making. To explore how justice is currently invoked in such contexts, we examine recent U.K. policies for renewable energy and public submissions to applications for small-scale wind energy projects in Cornwall, U.K. The analysis of public comments revealed that justice concerns were rarely discussed explicitly. Comments instead did not raise concerns as justice issues or focused implicitly on distributive justice, stressing local aesthetic, community and economic impacts, clean energy and climate change. However, the findings indicated limited discussion of procedural or participatory justice, an absence that hampers the establishment of coherent procedures for deciding acceptable impacts, information standards, public participation and arbitrating disputes. We conclude by suggesting procedural reforms to policy and planning to enable greater public expression of justice concerns and debate on how to negotiate tensions between energy and environmental-social justice in renewable energy siting decisions.     

A methodological framework and tool for assessing the climate change related risks in the banking sector

Although climate change risks have been studied for a number of economic sectors, banking has received relatively little attention. The paper proposes a methodology and an associated decision-support tool for quantifying, in monetary terms, the risks for banks from the exposure of their loan recipients and/or applicants to climate change. The framework and tool are applied to a case study based on input from a Greek bank; results indicate that climate change risks for banks are considerable, and thus decision makers need to estimate their magnitude and possibly consider these within the credit management process, and in environmental planning.     

Community knowledge networks: an action-orientated approach to energy research

The Climate Change Act 2008 commits the UK to reducing carbon emissions by 80% of 1990 levels by 2050. With household emissions constituting more than a quarter of current total energy use in the UK, energy practices in the home have taken on increased policy attention. In this paper, we argue that the UK government's approach is founded upon a variant of methodological individualism that assumes that providing greater energy information to individuals will effect behaviour change in relation to energy use. Such an approach is potentially limited in its effectiveness and does not afford appropriate recognition to all those affected by energy policy. In contrast to this approach, we set out an alternative perspective, a community knowledge networks approach to energy and justice which recognises the contexts and relationships in which people live and use energy. Such an approach emphasises situated knowledge and practices in order to gain a greater understanding of how individuals and communities use energy, but, importantly, offers a means for affording greater recognitional justice to different social groups.     

The effect of clean energy regulations and incentives on green jobs: panel analysis of the United States, 1998–2007

‘Green jobs’ are often presented as a simultaneous solution for the economic downturn and the environmental crisis, particularly as they relate to sustainable development in energy and climate change. Federal, state, and municipal authorities have employed a variety of policy tools to boost job creation within their jurisdictions. This study focuses on the role that state policies play in creating green jobs. It examines two generic policy tools – regulations and incentives – each of which can be aimed at advancing energy efficiency or renewable energy production, and assesses the relative impact they have had on generating green jobs. In order to measure this impact, we utilize panel data compiled by the Pew Charitable Trusts, which contain a state‐level count of green jobs from 1998 to 2007. The results of the analysis suggest that regulations, particularly those that mandate action on renewable energy, are likely to increase the number of private sector green jobs in states. Regulations with clear guidelines and targets tend to reduce uncertainty in business, and can lead to increased private sector investment and job availability. This study provides practical lessons regarding the type and design of policy instruments and regulations on renewable energy, which effectively encourage green job growth.     

Local Environmental Investments and Sustainable Development: The evaluation of environmental projects in Scotland supported by the European Agriculture Guidance and Guarantee Fund

In the UK for the period 1994-99, a broad range of environmental projects were given financial support through the European Agriculture Guidance and Guarantee Fund under the Objective 1 and Objective 5b programmes. This paper is concerned with the ex-post evaluation of these projects set within a Sustainable Development framework. The aim was to identify project types or characteristics that offered the greatest return on investment. A classification of six broad project types was adopted. The evaluation revealed that there were significant differences between individual projects with respect to the type and scale, and temporal and social distribution of the benefits they delivered. In particular, as well as delivering environmental and economic benefits, many projects made a significant contribution to the development of human and social capital. The paper concludes that it is possible to improve the basis for future project selection in order to maximise the returns on environmental investments in the context of sustainable development.     

Community energy plans in Canadian cities: success and barriers in implementation

Climate change and sustainable development concerns have motivated some municipalities in Canada to develop community energy plans, which focus on energy needs at the local level for the development of efficient, economical and environmental energy systems. Five Canadian cities that were early adopters of community energy planning principles were studied to assess whether implementation has occurred and what barriers have been experienced. The cities achieved success in the implementation of energy management in municipal operations despite barriers in jurisdiction, perception of cost, communication and capacity, but energy management in the community had not been fully implemented and long-term changes were not prevalent. While reductions were made in the greenhouse gas (GHG) emissions produced by municipal operations, the community's overall GHG emissions were not significantly reduced. Long-term impacts on a city's function and growth will be key if community energy planning is to significantly impact community-wide GHG emissions and energy use.     

Off-grid: community energy and the pursuit of self-sufficiency in British Columbia's remote and First Nations communities

Remote or off-grid communities in Canada primarily rely on diesel generators for the provision of their electricity. Often surrounded by potential renewable resources, they are characterised as the low-hanging fruit of greenhouse gas mitigation strategies. While much is said about the promises of community energy projects, as well as technologies and policy mechanisms for addressing the needs of these communities, little attention has been paid to what communities, themselves, might want for their energy projects and what the implications of those desires might be for both technology development and community energy policies. This paper aims to fill this gap by exploring the on-going energy pursuits of a number of remote First Nations communities in British Columbia. It identifies a desire for community self-sufficiency as a primary motivation for engaging with energy projects on the part of the communities and discusses the various meanings and implications of self-sufficiency in the context of community energy projects. These meanings and implications primarily include the two dimensions of material self-sufficiency and political self-determination, the latter of which suggests a view of community energy projects as processes of decolonisation among First Nation communities in British Columbia. It then suggests that the pursuit of this goal is somewhat incongruent with the approach that government and industry have taken in addressing community energy, especially the way in which remote communities are viewed as the low-hanging fruit of various sustainability projects.     

Distributing power? Community energy projects' experiences of planning,policy and incumbents in the devolved nations of Scotland and Wales

Community-owned energy projects are viewed as compelling contributors towards renewable energy targets. They contribute to curtailing the use of carbon intensive energy sources, consequently aiding mitigation of climate change, and can contribute towards a sustainable, localised economy. The success and expansion of the sector varies. However, there is a lack of knowledge regarding the development of the sector between sub-state nations. This qualitative, comparative study looks at the sector in the sub-state, devolved nations of Wales and Scotland within the UK. Through a series of in-depth interviews with community energy practitioners in four case study sites in Scotland and Wales, this study shows how policy and governance practices can influence the sector and those working at grassroots level. The study shows a disparity in confidence and outlook for the sector, based on the perceived (in)effective governance in each devolved nation.     

The adoption of green energy technologies: The role of policies in Austria,Germany, and Switzerland

We contribute to the existing research about policy-induced technology adoption in several ways. First, we suggest a new survey design to measure the energy-related policy environment. Second, we simultaneously estimate the policy effects for the adoption propensity and the adoption intensity simultaneously and, third, we compare the policy effects in the three countries, Austria, Germany, and Switzerland. Based on a representative sample of firms for all three countries we find that policies essentially promote the adoption of technologies and they are practically ineffective for the intensity, which poses a great challenge to future policy designs. Voluntary agreements or demand-related factors are among the most important drivers for the adoption propensity of green energy technologies. Given the current institutional framework in the surveyed countries, subsidies are more effective in Austria, taxes are more effective in Germany, and demand-related factors are relatively more effective in Switzerland.     

Local impacts of US nuclear weapons facilities: a survey of planners

This research examines the perceptions of planners in communities around the largest US Department of Energy (DOE) nuclear weapons sites. Surveys and interviews revealed that planners are often unclear about DOE intentions, concerned about jobs and environmental contamination, and desire more involvement with future site use decisions. Planners' ratings of residents' trust of the DOE were also low, and low trust was most strongly associated with places where local officials have not been invited to future use meetings. Recommendations include improving coordination of on-site planning with local land use plans and increasing trust with a Federal-local government partnership that recognizes local concerns about the clean-up, closure and disposition of the sites.