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The Economic and Environmental Consequences of Automobile Lifetime Extension and Fuel Economy Improvement: Japan's Case

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  • Shigemi Kagawa
  • Yuki Kudoh
  • Keisuke Nansai
  • Tomohiro Tasaki

Abstract

The presenft paper develops a structural decomposition analysis with cumulative product lifetime distributions to estimate the effects of both product lifetime shifts and energy efficiency changes on the embodied energy consumptions. The empirical analysis focuses on automobile use (ordinary passenger vehicles, small passenger vehicles, and light passenger vehicles) in Japan during the period 1990-2000. It reveals that the lifetime extension of existing old vehicles during the study period was more beneficial to the environment than purchasing new passenger vehicles with a relatively high fuel economy, because the lifetime extension empirically contributed to reducing the embodied energy consumption at the production and end-use stages. We also found that the energy-saving impact of a one-year lifetime extension was approximately 1.3 times larger than that of the most significant technological improvement in the electric power generation sector.

Suggested Citation

  • Shigemi Kagawa & Yuki Kudoh & Keisuke Nansai & Tomohiro Tasaki, 2008. "The Economic and Environmental Consequences of Automobile Lifetime Extension and Fuel Economy Improvement: Japan's Case," Economic Systems Research, Taylor & Francis Journals, vol. 20(1), pages 3-28.
    • Handle: RePEc:taf:ecsysr:v:20:y:2008:i:1:p:3-28
    DOI: 10.1080/09535310801890615
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    3. Jiansuo Pei & Erik Dietzenbacher & Jan Oosterhaven & Cuihong Yang, 2011. "Accounting for China's Import Growth: A Structural Decomposition for 1997–2005," Environment and Planning A, , vol. 43(12), pages 2971-2991, December.
    4. Paola Rocchi & José Manuel Rueda-Cantuche & Alicia Boyano & Alejandro Villanueva, 2019. "Macroeconomic Effects of EU Energy Efficiency Regulations on Household Dishwashers, Washing Machines and Washer Dryers," Energies, MDPI, vol. 12(22), pages 1-21, November.
    5. Liu, Fangmei & Li, Li & Liang, Gemin & Huang, Liqiao & Gao, Wei, 2022. "National water footprints and embodied environmental consequences of major economic sectors-a case study of Japan," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 30-46.
    6. Shigemi Kagawa & Seiji Hashimoto & Shunsuke Managi, 2015. "Special issue: studies on industrial ecology," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 17(3), pages 361-368, July.
    7. Yuya Nakamoto & Shigemi Kagawa, 2022. "A generalized framework for analyzing car lifetime effects on stock, flow, and carbon footprint," Journal of Industrial Ecology, Yale University, vol. 26(2), pages 433-447, April.
    8. Kurt Kratena & Michael Wüger, 2010. "An Intertemporal Optimisation Model of Households in an E3-Model (Economy/Energy/Environment) Framework," WIFO Working Papers 382, WIFO.
    9. Kagawa, Shigemi & Nansai, Keisuke & Kudoh, Yuki, 2009. "Does product lifetime extension increase our income at the expense of energy consumption?," Energy Economics, Elsevier, vol. 31(2), pages 197-210.
    10. Glenn A. Aguilar-Hernandez & Carlos Pablo Sigüenza-Sanchez & Franco Donati & João F. D. Rodrigues & Arnold Tukker, 2018. "Assessing circularity interventions: a review of EEIOA-based studies," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-24, December.

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