Economic analysis of Japanese air pollution regulation: An optimal retirement problem under the vehicle type regulation in the NOx-particulate matter law

Kazuyuki Iwata, Toshihide Arimura

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

This paper examines the vehicle type regulation that was introduced under the Automobile Nitrogen Oxides-Particulate Matter Law to mitigate air pollution in Japanese metropolitan areas. The vehicle type regulation effectively sets the timing for vehicle retirement by initial registration year and type. However, there was no consideration of cost or efficiency in choosing the timing of retirement. We solve an optimal problem to maximize the social net benefit under the current framework of the vehicle type regulation. The analysis finds that the net benefit can more than double if the optimal retirement timing is chosen. Further, we find that even a simple alteration of the retirement timing can increase the social net benefit by 13%.

Original languageEnglish
Pages (from-to)157-167
Number of pages11
JournalTransportation Research Part D: Transport and Environment
Volume14
Issue number3
DOIs
Publication statusPublished - 2009 May
Externally publishedYes

Fingerprint

retirement
Economic analysis
air pollution
economic analysis
Air pollution
particulate matter
atmospheric pollution
regulation
Law
economics
Nitrogen oxides
nitrogen oxides
metropolitan area
Automobiles
motor vehicle
automobile
agglomeration area
efficiency
vehicle
costs

Keywords

  • Air pollution
  • Cost-benefit analysis
  • Optimal retirement model
  • Regulatory impact analysis

ASJC Scopus subject areas

  • Environmental Science(all)
  • Transportation

Cite this

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AB - This paper examines the vehicle type regulation that was introduced under the Automobile Nitrogen Oxides-Particulate Matter Law to mitigate air pollution in Japanese metropolitan areas. The vehicle type regulation effectively sets the timing for vehicle retirement by initial registration year and type. However, there was no consideration of cost or efficiency in choosing the timing of retirement. We solve an optimal problem to maximize the social net benefit under the current framework of the vehicle type regulation. The analysis finds that the net benefit can more than double if the optimal retirement timing is chosen. Further, we find that even a simple alteration of the retirement timing can increase the social net benefit by 13%.

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