Low Carbon Urban Infrastructure Investment in Asian Cities (Cities and the Global Politics of the Environment)

Several Asian cities have already invested in initiatives to build and promote Green Cities. Owing to the limited capacity of local governments, the funding of urban infrastructure has become a critical issue. Against this background, this book explores a new funding mechanism which demands the engagement of many stakeholders, including public-private partnerships. This book offers guidance on how cities in selected countries can play a key role in the green growth agenda, by stimulating growth through smart investment in urban infrastructure such as through building a physical infrastructure, offering financial and tax incentives, and heightening societyℓ́ℓs awareness of a sustainable lifestyle. Joni Jupesta is a Visiting Research Fellow at United Nations University. Previously, he held a two-year post as an Environment Advisor at Sinar Mas Agribusiness in Indonesia (2013-2015). Prior to that, he was a Japan Society for the Promotion of Science-UNU Postdoctoral Fellow (2011-2013) and UNU-IAS Postdoctoral Fellow (2010-2011) at the United Nations University (UNU) in Tokyo, Japan. An Indonesian citizen, in 2010 he obtained his Ph. D. in Management Science and Technology from Tohoku University, Japan. He contributed two policy briefs to Rio+20: Green economy and Institutional Framework towards Sustainable Development in Indonesia context. Further, he has received several awards for his research work in innovation for sustainability, including but not limited to: the Green Talent Award in 2012 from the German Federal Ministry of Education and Research (BMBF), and the Mitra Award in 2013 from the Asia Pacific Network for Global Change Research (APN), and the BIARI Seed Grant Award 2014 from Brown University, USA. Takako Wakiyama is Researcher of Climate and Energy Area and Green Economy Area at the Institute for Global Environmental Strategies (IGES). Her research focuses on climate and energy policies and economics at national and city level. She has conducted policy impact analysis, scenario analysis and simulation analysis to estimate economic and environment risks and benefits of energy efficiency and renewable energy Foreword 6 Series Editors’ Preface 8 Contents 10 Notes on Contributors 12 Chapter 1: Introduction 16 1.1 Green Investment in Asian Cities 16 1.2 Methodology and Approaches to Addressing Green Investment in Asian Cities 17 1.3 The Focus of this Book 19 Chapter 2: Renewable Energy Investment Risk Analysis for Low-Carbon City Development in Yokohama 22 2.1 Introduction 22 2.2 Renewable Energy Financing Renewable Energy Investment Risks and Costs 24 2.2.1 Barriers to Accelerating Renewable Energy Investments 24 2.2.2 Risk Mitigation Approaches 27 2.2.2.1 Renewable Portfolio Standard 27 2.2.2.2 Green Power Certificate 28 2.2.2.3 Feed-in Tariff 29 2.2.2.4 Tax Policies and Subsidies 29 2.3 Case Study on Yokohama, Japan 30 2.4 Data and Methodology 32 2.4.1 Household 33 2.4.2 Commercial Sector 35 2.5 Solar PV Investment Results 36 2.5.1 Household 36 2.5.2 Commercial Sector 38 2.6 Challenges 42 2.7 Conclusion 43 References 45 Chapter 3: Analysis of Economic Incentive Policies for Promoting Green Building Development in China 51 3.1 Introduction 52 3.1.1 Energy Conservation Legislation in China’s Building Sector 53 3.1.2 Green Buildings in China Today 55 3.2 Methods 60 3.3 Results 61 3.3.1 Current Chinese Central Government Economic Policies 61 3.3.2 Subsidies and Incremental Costs of Green Buildings 62 3.3.3 Case Studies 63 3.3.4 Number of Design- and Operation-Stage Green Buildings 65 3.4 Discussion 67 3.4.1 Barriers to Green Building Development in China 67 3.4.2 Energy Performance Contract 68 3.4.3 Carbon Trading and Carbon Taxes 70 3.5 Conclusions and Policy Implications 71 References 72 Chapter 4: Low-Carbon City Scenarios for DKI Jakarta Towards 2030 75 4.1 Introduction 76 4.2 Design and Methods 77 4.3 Results and Discussion of Energy Sector Development and GHG Emissions 80 4.4 Conclusion and Remarks 89 References 90 Chapter 5: Economic Impact Assessment on Low-­Carbon Investment in Renewable Energy in Yokohama, Japan 91 5.1 Introduction 91 5.2 Literature Reviews 93 5.2.1 Economic Effects of Renewable Energy Introduction 93 5.2.2 Renewable Energy Policies and Investment in Yokohama, Japan 94 5.3 Data and Methodology 96 5.3.1 Data 96 5.3.2 Methodology 97 5.4 Results 97 5.4.1 Backward Linkages 97 5.4.2 Forward Linkages 98 5.4.3 Economic Impact Assessment on Low-Carbon Investment in Renewable Energy in Yokohama 100 5.5 Conclusion 102 Appendix: Sector Classifications 103 References 105 Chapter 6: Smart Cities in Japan and Their Application in Developing Countries 108 6.1 Introduction 109 6.2 Definition of SC and the Japanese Case 110 6.2.1 Definition of SC 110 6.2.2 The Four SC Sectors 112 6.3 The Yokohama Case Study 112 6.3.1 Minato Mirai 21, Dawn of City Smartization 112 6.3.2 SC Policies Implemented in Yokohama 113 6.4 The Yokohama SC Across Four Sectors and Three Fields 116 6.4.1 The Application of Yokohama’s Experiences to the Developing World 117 6.5 Present Infrastructural Conditions in the Poorest Regions of India 118 6.5.1 Slums in India 118 6.5.2 The Four Sectors and Three Fields with Regard to Indian Slum Conditions 119 6.5.3 Slum Conditions in Four Sectors and Three Fields 122 6.6 Application to India 122 6.6.1 Energy Uses in the Poorest Settings 123 6.6.2 Providing Electricity Through Microgrids in the Poorest Areas 125 6.6.3 Economic Measures for Microgrid Finance 126 6.7 Conclusions 129 6.7.1 EKC and SC Development 129 6.7.2 Towards Leapfrogging to SCs 131 References 132 Chapter 7: Conclusions and Ways Forward 136 7.1 Conclusion 136 7.2 Ways Forward 138 References 139 Index 140 Several Asian cities have already invested in initiatives to build and promote Green Cities. Owing to the limited capacity of local governments, the funding of urban infrastructure has become a critical issue. Against this background, this book explores a new funding mechanism which demands the engagement of many stakeholders, including public-private partnerships. This book offers guidance on how cities in selected countries can play a key role in the green growth agenda, by stimulating growth through smart investment in urban infrastructure such as through building a physical infrastructure, offering financial and tax incentives, and heightening societyĺls awareness of a sustainable lifestyle. Joni Jupesta is a Visiting Research Fellow at United Nations University. Previously, he held a two-year post as an Environment Advisor at Sinar Mas Agribusiness in Indonesia (2013-2015). Prior to that, he was a Japan Society for the Promotion of Science-UNU Postdoctoral Fellow (2011-2013) and UNU-IAS Postdoctoral Fellow (2010-2011) at the United Nations University (UNU) in Tokyo, Japan. An Indonesian citizen, in 2010 he obtained his Ph. D. in Management Science and Technology from Tohoku University, Japan. He contributed two policy briefs to Rio+20: Green economy and Institutional Framework towards Sustainable Development in Indonesia context. Further, he has received several awards for his research work in innovation for sustainability, including but not limited to: the Green Talent Award in 2012 from the German Federal Ministry of Education and Research (BMBF), and the Mitra Award in 2013 from the Asia Pacific Network for Global Change Research (APN), and the BIARI Seed Grant Award 2014 from Brown University, USA. Takako Wakiyama is Researcher of Climate and Energy Area and Green Economy Area at the Institute for Global Environmental Strategies (IGES). Her research focuses on climate and energy policies and economics at national and city level. She has conducted policy impact analysis, scenario analysis and simulation analysis to estimate economic and environment risks and benefits of energy efficiency and renewable energy Front Matter....Pages i-xiv Introduction....Pages 1-6 Renewable Energy Investment Risk Analysis for Low-Carbon City Development in Yokohama....Pages 7-35 Analysis of Economic Incentive Policies for Promoting Green Building Development in China....Pages 37-60 Low-Carbon City Scenarios for DKI Jakarta Towards 2030....Pages 61-76 Economic Impact Assessment on Low-Carbon Investment in Renewable Energy in Yokohama, Japan....Pages 77-93 Smart Cities in Japan and Their Application in Developing Countries....Pages 95-122 Conclusions and Ways Forward....Pages 123-126 Back Matter....Pages 127-129