Renewable energy is expected to promote energy security, environment, and economic efficiency for the electricity configuration in Japan. The impacts from both economic and environmental aspects have not quantitatively investigated in the case that renewable energy sources are largely installed in the society. In this study, we adopt the input-output analysis as an analytical tool for introduction impact of PV systems. New sectors related to the PV systems, such as “PV module sector”, “BOS sector”, and “PV power generation sector” are created and added to 2005 input-output table for Japan. The extended input-output table allows for estimating the introduction impact in consideration of technical characteristics of PV systems. Based on the hybrid input-output approach, the economic impact and CO
2 emissions of PV systems are analyzed. As a result, it is clarified that (1) the installation of PV systems induce widely production of related industries by the effect of PV manufacturing and construction, and direct and indirect CO
2 emission derived from the PV systems is much lower than that of the other power plants; (2) however, the net amount of added value in industries is offset because there is not only positive impact of production growth due to the manufacturing and construction, but also negative impact of an economic spillover effect caused by the installation of PV systems.
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