Potential Impacts of Small Hydropower Generation on Regional Economic Revitalization in Tannan District, Fukui Prefecture

Abstract

Accelerating the introduction of renewable energy is a pressing issue for building a decarbonized society. While Japan has been heavily weighted toward solar power generation, small-scale hydropower plants can generate new employment, tax revenues, and profits. Such plants can be operated stably with relatively little capital if appropriately designed and constructed with a certain water volume and river dropoff. This paper examines the Tannan region of Fukui Prefecture, a mountainous region suffering from depopulation. We use an input?output table to convert a small hydropower plant’s effect on the local economy into monetary terms, showing that small-scale hydropower generation can help revitalize the local economy. Furthermore, small hydropower plants in Japan often use foreignmade generators, and the payments for these generators go overseas; however, they also add significant value to the communities where they are located.