ECONOMIC IMPACT OF ELECTRICITY SUPPLY SHORTAGE IN JAPAN

Abstract

This paper evaluates the economic impact of lost productivity due to limitation of electrical power supply policies in Kanto region by using the SCGE [Spatial Computable General Equilibrium] model. The purpose of this study is that how much indirect economic damage of this policy spread to Tohoku region where happened the Great East Japan Earthquake disaster. In addition, we analyzed the economic benefit that caused by the restriction of electric power interchange due to the difference in frequency of 60Hz or 50Hz. Our simulation results clearly show there is a possibility that economic depression in Kanto is a adversely affect the reconstruction of Tohoku and power interchange project is effective to reduce this damages.