A Cyclical Economic Analysis of the Biogas Plant in Shikaoi Town

Abstract

Inanenvironmental economic analysis of thelargest biogas plant in Japan, a number of matters were clarified through the quantitative assessment of the plantʼsinvestment effects and environmental functions. Income earned from waste processing remains as important as revenue from electricity sales even after the introduction of a feed-in tariff (FIT) scheme significantly boosted the latter. This confirms that the plant successfully performs thetwo functions of treating organic waste and utilizing renewable energy. However, the initial investment has not been fully recouped even though electricity is purchased under the FIT scheme. One reason for this is insufficient income from the heat generated, and another is that thepublic welfare functions of theenvironmental measures have not been assessed economically. Interms of contribution to the local economy, attention should be paid not only to jobsatthe plant but also to the facilityʼs role as a basis for thesurvival of agriculture and other local industries. Considering these points, support for the biogas plant via the FIT scheme and agricultural subsidies can be seen as economically useful and necessary.