Volume 3 Issue 2 ( September 2016 )

Pages 54-58

Modifying the Feed-in Tariff System in Japan: An Environmental Perspective

Takanori Hanada


The uptake of solar cell technology has been accelerated by feed-in tariff (FIT), a policy mechanism that requires electricity companies to purchase renewable energy at a certain price. A FIT system promotes solar cell technology in an economically rational manner. Currently, the crystalline silicon solar cell is the mainstream solar cell technology. However, we consider that this is not necessarily the best selection with regard to environmental protection. Path dependency explains how a set of decisions for any given circumstance is limited by the decisions made in the past, even though past circumstances may no longer be relevant. In this study, we investigate the path dependency of mainstream solar cell technology. We propose a redesign of the FIT system in order to promote environmentally friendly solar cells in terms of energy and resource saving at the manufacturing stage, both of which contribute to the prevention of global warming.

Keywords: Feed-in Tariff, Path Dependency, Solar Cell, Renewable Energy