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Economic and Environmental Impacts of Electric Vehicle Society in Toyohashi City in Japan - A CGE Modeling Approach -

Author

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  • Yuzuru Miyata
  • Hiroyuki Shibusawa
  • Tomoaki Fujii

Abstract

In this paper we explore economic and environmental impacts of promotion and realization of an electric vehicle society (EVS). More concretely, this paper emphasizes a CGE-modelling approach to evaluate the following issues: entire economic impacts of subsidies for promotion of an EVS, the possibility of carbon dioxide (CO2) emissions and prices reduction, a change of industrial structure towards an EVS, and a modal shift towards an EVS. Our simulation results demonstrate that after applying 20% subsidies to five industries including electric vehicles (EVs) manufacturing, EV transport, solar power generation, cogeneration and other transport, the total industrial output and municipal GDP increase. A large growth rates are found in industries where subsidies are introduced except non-ferrous metal industry. However, it is motivating that decreasing proportions are found in oil, coal product, mining, heat supply and gasoline vehicles (GVs) transport industries. Moreover all the commodity prices decrease since subsidies are given to some industries. Hence Toyohashi City's economy shows a direction where the demand for conventional vehicles and energy use are decreased, conversely, the demand for EVs and renewable energy are increased that displays different lifestyles from the current one. For all these reasons, it is our conclusion that EVS can really represent a realistic and alternative society both in terms of economic development and CO2 emissions reduction. In this study therefore it is clear that modal shift will occur to EVS, and thus we suggest for promotion of a new industrial structure to introduce an EVS in Toyohashi City in Japan. The proposed model can even be applied to the other cities in Japan and other countries in the world which are similar to this area.

Suggested Citation

  • Yuzuru Miyata & Hiroyuki Shibusawa & Tomoaki Fujii, 2014. "Economic and Environmental Impacts of Electric Vehicle Society in Toyohashi City in Japan - A CGE Modeling Approach -," ERSA conference papers ersa14p529, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa14p529
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    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa14/e140826aFinal00529.pdf
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    References listed on IDEAS

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    1. repec:hrs:journl::y:2012:v:4:i:3:p:105-125 is not listed on IDEAS
    2. Shamsunnahar Khanam & Yuzuru Miyata, 2012. "New Industrial Structure Coping With The Economic Impacts Of Shifting Production To Battery-Based Electric Vehicles In Toyohashi City In Japan-A Cge Modeling Approach-," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(3), pages 105-125, December.
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    1. Yuzuru Miyata & Hiroyuki Shibusawa & Tomoaki Fujii, 2018. "Economic Impact Of Subsidy Policies To Electric Vehicle Society In Toyohashi City In Japan — A Cge-Modeling Approach," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 63(02), pages 409-429, March.
    2. Yuzuru Miyata & Hiroyuki Shibusawa & Tomoaki Fujii, 2015. "Economic Impact of CO2 Emissions and Carbon Tax in Electric Vehicle Society in Toyohashi City in Japan," ERSA conference papers ersa15p319, European Regional Science Association.

    More about this item

    Keywords

    electric vehicle; CGE; Toyohashi; R13; O18;
    All these keywords.

    JEL classification:

    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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