Socioeconomic Life Cycle Analysis of Geothermal Power Generation Considering Regional Industrial Structures

Abstract

The introduction of geothermal energy is expected to have socioeconomic effects. Our previous studies showed that these effects were greater in the operation and maintenance (O&M) stages than in the manufacturing and construction stages. However, additional research and complex economic models are required to identify quantitatively the regions where these effects occur. Additionally, when the introduction of a technology is being considered, study time and information resources are limited. Therefore, it is necessary to construct a highly versatile method that can be applied to answer questions quickly. The purpose of this study is to construct a method that analyzes the effects of the introduction of geothermal energy generation technologies both within and outside regions by combining input–output (IO) models that reflect the industrial structure and relevant information about the energy technology. The target technology is geothermal energy generation with a capacity of 50,000 kW. The study considers equipment manufacturing, including turbines and generators, well drilling (including surveying and additional drilling), transportation-pipe construction, and O&M (including the Japanese feed-in tariff) of 40 years. The information used for this study, on costs and social situations, covered the period 2011–2015. Analysis of the results showed that there was a difference in the indirect effect on the manufacturing sector related to electronic devices and related parts, depending on regional industrial structures. However, there was also an indirect effect on service sectors, including maintenance, freight transportation, and commerce (wholesale and retail) in all regions. Our method could be applied to any region for which a regional IO table was prepared and could be used for other renewable and hydrogen-based energy systems.