Does product lifetime extension increase our income at the expense of energy consumption?
The present paper contributes to modeling a simple social accounting method with cumulative product lifetime distributions and argues how product lifetime extension affects income flow throughout the entire economic system. Empirical analysis focusing on automobile use (ordinary passenger vehicle, small passenger vehicle, and light passenger vehicle) in Japan revealed that if all of the additional income gain from product lifetime extension flows into the investment sector, a one-year lifetime extension during the ten years of the study period (1990–2000) would have led to an increase in income in 2000 amounting to +7 billion yen, as well as contributing to savings in energy amounting to −4×106 GJ. That is, longer-term passenger vehicle use increases income and decreases energy consumption under special cases. We also found that in the general case when less than 93% of additional income resulting from vehicle lifetime extension is directed to the investment sector, a +1 year automobile lifetime extension increases income at the expense of energy consumption.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jan Oosterhaven & Jan Van Der Linden, 1997. "European Technology, Trade and Income Changes for 1975-85: An Intercountry Input-Output Decomposition," Economic Systems Research, Taylor & Francis Journals, vol. 9(4), pages 393-412.
- Kazumi Hitomi & Yasuhide Okuyama & Geoffrey Hewings & Michael Sonis, 2000. "The Role of Interregional Trade in Generating Change in the Regional Economies of Japan, 1980-1990," Economic Systems Research, Taylor & Francis Journals, vol. 12(4), pages 515-537.
- Kenneth A. Small & Kurt Van Dender, 2007.
"Fuel Efficiency and Motor Vehicle Travel: The Declining Rebound Effect,"
The Energy Journal,
International Association for Energy Economics, vol. 0(Number 1), pages 25-52.
- Kenneth A. Small & Kurt Van Dender, 2006. "Fuel Efficiency and Motor Vehicle Travel: The Declining Rebound Effect," Working Papers 050603, University of California-Irvine, Department of Economics.
- Lenzen, Manfred & Dey, Christopher J., 2002. "Economic, energy and greenhouse emissions impacts of some consumer choice, technology and government outlay options," Energy Economics, Elsevier, vol. 24(4), pages 377-403, July.
- 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.
- Erik Dietzenbacher & Bart Los, 1998. "Structural Decomposition Techniques: Sense and Sensitivity," Economic Systems Research, Taylor & Francis Journals, vol. 10(4), pages 307-324.
- Mette Wier, 1998. "Sources of Changes in Emissions from Energy: A Structural Decomposition Analysis," Economic Systems Research, Taylor & Francis Journals, vol. 10(2), pages 99-112.
- Bullard, Clark W. & Herendeen, Robert A., 1975. "The energy cost of goods and services," Energy Policy, Elsevier, vol. 3(4), pages 268-278, December.
- Wolff, Edward N, 1985. "Industrial Composition, Interindustry Effects, and the U.S. Productivity Slowdown," The Review of Economics and Statistics, MIT Press, vol. 67(2), pages 268-277, May.
- Wolff, Edward N., 1984. "Industrial Composition, Interindustry Effects, and the US Productivity Slowdown," Working Papers 84-09, C.V. Starr Center for Applied Economics, New York University.
- A. Greening, Lorna & Greene, David L. & Difiglio, Carmen, 2000. "Energy efficiency and consumption -- the rebound effect -- a survey," Energy Policy, Elsevier, vol. 28(6-7), pages 389-401, June.
- Rutger Hoekstra & Jeroen C. J. M. van den Bergh, 2006. "The Impact of Structural Change on Physical Flows in the Economy: Forecasting and Backcasting Using Structural Decomposition Analysis," Land Economics, University of Wisconsin Press, vol. 82(4), pages 582-601.
- Pyatt, F Graham & Round, Jeffery I, 1979. "Accounting and Fixed Price Multipliers in a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 89(356), pages 850-873, December.
- Mark De Haan, 2001. "A Structural Decomposition Analysis of Pollution in the Netherlands," Economic Systems Research, Taylor & Francis Journals, vol. 13(2), pages 181-196.
- Shigemi Kagawa, 2005. "Inter-industry analysis, consumption structure, and the household waste production structure," Economic Systems Research, Taylor & Francis Journals, vol. 17(4), pages 409-423.
- J., Pablo Muñoz & Hubacek, Klaus, 2008. "Material implication of Chile's economic growth: Combining material flow accounting (MFA) and structural decomposition analysis (SDA)," Ecological Economics, Elsevier, vol. 65(1), pages 136-144, March.
- Raa, Thijs ten & Wolff, Edward N., 1991. "Secondary products and the measurement of productivity growth," Regional Science and Urban Economics, Elsevier, vol. 21(4), pages 581-615, December.
- ten Raa, Thijs & Wolff, Edward N., 1988. "Secondary Products And The Measurement Of Productivity Growth," Working Papers 88-34, C.V. Starr Center for Applied Economics, New York University.
- Edward Wolff, 2006. "The growth of information workers in the US economy, 1950-2000: the role of technological change, computerization, and structural change," Economic Systems Research, Taylor & Francis Journals, vol. 18(3), pages 221-255.
- Clifton T Jones, 1993. "Another Look at U.S. Passenger Vehicle Use and the 'Rebound' Effect from Improved Fuel Efficiency," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 99-110.
- Bullard, Clark W. & Penner, Peter S. & Pilati, David A., 1978. "Net energy analysis : Handbook for combining process and input-output analysis," Resources and Energy, Elsevier, vol. 1(3), pages 267-313, November.
- David L. Greene, 1992. "Vehicle Use and Fuel Economy: How Big is the "Rebound" Effect?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 117-144.
- Goldberg, Pinelopi Koujianou, 1998. "The Effects of the Corporate Average Fuel Efficiency Standards in the US," Journal of Industrial Economics, Wiley Blackwell, vol. 46(1), pages 1-33, March.
- Heyes, Anthony G. & Liston-Heyes, Catherine, 1993. "US demilitarization and global warming : An empirical investigation of the environmental peace dividend," Energy Policy, Elsevier, vol. 21(12), pages 1217-1224, December.
- Kagawa, Shigemi & Tasaki, Tomohiro & Moriguchi, Yuichi, 2006. "The environmental and economic consequences of product lifetime extension: Empirical analysis for automobile use," Ecological Economics, Elsevier, vol. 58(1), pages 108-118, June.
- Wolff, Edward N., 1994. "Productivity measurement within an input-output framework," Regional Science and Urban Economics, Elsevier, vol. 24(1), pages 75-92, February.
- Kudoh, Yuki & Kondo, Yoshinori & Matsuhashi, Keisuke & Kobayashi, Shinji & Moriguchi, Yuichi, 2004. "Current status of actual fuel-consumptions of petrol-fuelled passenger vehicles in Japan," Applied Energy, Elsevier, vol. 79(3), pages 291-308, November. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:31:y:2009:i:2:p:197-210. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.