Skip to content

Asia-Pacific Network for Global Change Research

Asia-Pacific Network for Global Change Research

Read our Science Bulletin
Project • LCI2013-05CMY(R)-Jupesta, LCI2012-05NMY(R)-Jupesta

Low Carbon Urban Infrastructure Investment: Cases of China, Indonesia, and Japan

This project explores the potential role of cities that can play in the green growth agenda by making smart urban infrastructure investments in low-carbon buildings and by using financial incentives and taxes, by fostering renewable energy supplies. The project uses several qualitative and quantitative approaches to define measure and monitor green investment at the city scale in Jakarta, Yokohama and Shanghai. Some of methods were including risk analysis, cost-benefit analysis, integrated assessment modelling, input-output analysis and comparative analysis. Yokohama studies analyzed the effects of Feed in Tariff (FIT) and other policies on renewable energy investments. The results show that solar energy sources will enjoy an increase in the probability of returns over 20 years for both the household and commercial sectors in Yokohama. However, the returns will depend on the rate of FIT schemes and on installation costs. The Shanghai case study explored the incremental costs of green buildings and drawing comparisons between current subsidies. Study concluded that total subsidies in Shanghai and Suzhou are sufficient for two-star green buildings, but are insufficient to encourage the development of three-star green buildings at both the national and local levels, which suggests that it would be costly for developers to build three-star green buildings, but it would be profitable for them to build two-star green buildings. Several modeling studies were carried out to examine the low carbon city scenario for Capital City District (DKI) of Jakarta towards 2030. Results show that the energy demand of Jakarta will increase significantly, particularly due to increasing activity in the industrial and transportation sectors. Efforts to achieve the mitigation scenario could be realized by a radical shift from coal to gas as well as implementing energy efficiency measures in industry, non-governmental and residential buildings.

Project leader