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While the potential for value-added and employment at the stage of system manufacture is significant at the national level, RE system and components manufacturing companies have to be located within the respective region to generate value-added for a region.
For example, in case of onshore wind power, the value chain stage of system manufacture is subdivided into individual value chain steps for the production of key components such as the tower, generator, or rotor blade.
In difference to the IÖW model, the model for Japan refrained from evaluating the regional economic effects at the stage of system manufacture, in order to simplify the comparative analysis.
For the comparative study, a uniform tax rate of 5% was applied only to the revenues on system operating stage, as the analysis does not take into account the regional economic effects of system manufacture.
Because this is often not the case in many regions, it seems justified to exclude the stage of system manufacture from the comparative analysis and to focus on regional economic effects from RE at the stages of planning and installation, operation and maintenance, and system management.
The results are considered to be valid and robust, as the stage of system manufacture is excluded from the comparative analysis, thereby avoiding the cumbersome task of integrating differences in the structure of international trade in the field of RE technologies into the model.
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