IDEAS home Printed from https://ideas.repec.org/a/wsi/serxxx/v63y2018i02ns0217590817400185.html
   My bibliography  Save this article

Economic Impact Of Subsidy Policies To Electric Vehicle Society In Toyohashi City In Japan — A Cge-Modeling Approach

Author

Listed:
  • YUZURU MIYATA

    (Graduate School of Architecture and Civil Engineering, Toyohashi University of Technology, Toyohashi, Japan)

  • HIROYUKI SHIBUSAWA

    (Graduate School of Architecture and Civil Engineering, Toyohashi University of Technology, Toyohashi, Japan)

  • TOMOAKI FUJII

    (Graduate School of Architecture and Civil Engineering, Toyohashi University of Technology, Toyohashi, Japan)

Abstract

In this paper, we explore the economic impact of promotion and realization of an electric vehicle society (EVS). More concretely, this paper emphasizes a computable general equilibrium (CGE) modeling approach to evaluate the following issues: economic impacts of subsidies for promotion of an EVS, the possibility of price reductions, industrial structure change toward an EVS, and modal shift occurring toward an EVS. Our simulation results demonstrate that after applying 5–25% up subsidies to five industries, such as electric vehicle (EV) manufacturing, EV transport, solar power, cogeneration and other transport, the total industrial output and city GDP increase. A large growth rate is found in industries where subsidies are introduced alone with non-ferrous metal industry. However, it is interesting that decreasing proportions are found in oil and coal product, mining, heat supply and gasoline vehicle (GV) 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 illustrating a different life style from the current one. However, it does not mean that the total CO2 emission is decreased. EV society makes some industrial outputs larger. Due to the fact that some industrial outputs are increased, CO2 emissions of EV manufacturing and nonferrous metal are increased more than decreased industries. Thus, introducing 5–25% subsidies to EV manufacturing, EV transport, solar power, cogeneration and other transport can really represent a realistic alternative society to EVS if the total CO2 emission can be reduced. Therefore, we have to think what can make the total CO2 emission reduced.

Suggested Citation

  • 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.
    • Handle: RePEc:wsi:serxxx:v:63:y:2018:i:02:n:s0217590817400185
    DOI: 10.1142/S0217590817400185
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0217590817400185
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0217590817400185?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. repec:hrs:journl::y:2012:v:4:i:3:p:105-125 is not listed on IDEAS
    2. Karplus, Valerie J. & Paltsev, Sergey & Reilly, John M., 2010. "Prospects for plug-in hybrid electric vehicles in the United States and Japan: A general equilibrium analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(8), pages 620-641, October.
    3. 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.
    4. Hirte, Georg & Tscharaktschiew, Stefan, 2013. "The optimal subsidy on electric vehicles in German metropolitan areas: A spatial general equilibrium analysis," Energy Economics, Elsevier, vol. 40(C), pages 515-528.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jiang, Hong-Dian & Xue, Mei-Mei & Liang, Qiao-Mei & Masui, Toshihiko & Ren, Zhong-Yuan, 2022. "How do demand-side policies contribute to the electrification and decarburization of private transportation in China? A CGE-based analysis," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    2. Lin, Boqiang & Wu, Wei, 2021. "The impact of electric vehicle penetration: A recursive dynamic CGE analysis of China," Energy Economics, Elsevier, vol. 94(C).
    3. Zhang, Hao & Cai, Guixin, 2020. "Subsidy strategy on new-energy vehicle based on incomplete information: A Case in China," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 541(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fa-Ping Wang & Jia-Li Yu & Peng Yang & Li-Xin Miao & Bin Ye, 2017. "Analysis of the Barriers to Widespread Adoption of Electric Vehicles in Shenzhen China," Sustainability, MDPI, vol. 9(4), pages 1-20, March.
    2. Hirte, Georg & Tscharaktschiew, Stefan, 2018. "The impact of anti-congestion policies and the role of labor-supply margins," CEPIE Working Papers 04/18, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    3. Larson, Paul D. & Viáfara, Jairo & Parsons, Robert V. & Elias, Arne, 2014. "Consumer attitudes about electric cars: Pricing analysis and policy implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 69(C), pages 299-314.
    4. 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.
    5. Hongxia Sun & Yao Wan & Huirong Lv, 2020. "System Dynamics Model for the Evolutionary Behaviour of Government Enterprises and Consumers in China’s New Energy Vehicle Market," Sustainability, MDPI, vol. 12(4), pages 1-21, February.
    6. Martin T. Ross, Patrick T. Sullivan, Allen A. Fawcett, and Brooks M. Depro, 2014. "Investigating Technology Options for Climate Policies: Differentiated Roles in ADAGE," The Energy Journal, International Association for Energy Economics, vol. 0(Special I).
    7. Jensen, Jesper & Tarr, David G., 2011. "Deep Trade Policy Options for Armenia: The Importance of Services, Trade Facilitation and Standards Liberalization," Conference papers 332083, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Elena Higueras-Castillo & Sebastian Molinillo & J. Andres Coca-Stefaniak & Francisco Liébana-Cabanillas, 2020. "Potential Early Adopters of Hybrid and Electric Vehicles in Spain—Towards a Customer Profile," Sustainability, MDPI, vol. 12(11), pages 1-18, May.
    9. Fan, Ruguo & Dong, Lili, 2018. "The dynamic analysis and simulation of government subsidy strategies in low-carbon diffusion considering the behavior of heterogeneous agents," Energy Policy, Elsevier, vol. 117(C), pages 252-262.
    10. Petschnig, Martin & Heidenreich, Sven & Spieth, Patrick, 2014. "Innovative alternatives take action – Investigating determinants of alternative fuel vehicle adoption," Transportation Research Part A: Policy and Practice, Elsevier, vol. 61(C), pages 68-83.
    11. Kim, Junghun & Seung, Hyunchan & Lee, Jongsu & Ahn, Joongha, 2020. "Asymmetric preference and loss aversion for electric vehicles: The reference-dependent choice model capturing different preference directions," Energy Economics, Elsevier, vol. 86(C).
    12. Axsen, Jonn & Kurani, Kenneth S., 2013. "Hybrid, plug-in hybrid, or electric—What do car buyers want?," Energy Policy, Elsevier, vol. 61(C), pages 532-543.
    13. Karplus, Valerie J. & Paltsev, Sergey & Babiker, Mustafa & Reilly, John M., 2013. "Should a vehicle fuel economy standard be combined with an economy-wide greenhouse gas emissions constraint? Implications for energy and climate policy in the United States," Energy Economics, Elsevier, vol. 36(C), pages 322-333.
    14. Zhongqi Deng & Peng Tian, 2020. "Are China's subsidies for electric vehicles effective?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(4), pages 475-489, June.
    15. Jochem, Patrick & Doll, Claus & Fichtner, Wolf, 2016. "External costs of electric vehicles," MPRA Paper 91602, University Library of Munich, Germany.
    16. Alabi, Oluwafisayo & Turner, Karen & Figus, Gioele & Katris, Antonios & Calvillo, Christian, 2020. "Can spending to upgrade electricity networks to support electric vehicles (EVs) roll-outs unlock value in the wider economy?," Energy Policy, Elsevier, vol. 138(C).
    17. Raslavičius, Laurencas & Azzopardi, Brian & Keršys, Artūras & Starevičius, Martynas & Bazaras, Žilvinas & Makaras, Rolandas, 2015. "Electric vehicles challenges and opportunities: Lithuanian review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 786-800.
    18. Weixing Liu & Hongtao Yi, 2020. "What Affects the Diffusion of New Energy Vehicles Financial Subsidy Policy? Evidence from Chinese Cities," IJERPH, MDPI, vol. 17(3), pages 1-15, January.
    19. Zeyu Chen & Jiahuan Lu & Bo Liu & Nan Zhou & Shijie Li, 2020. "Optimal Energy Management of Plug-In Hybrid Electric Vehicles Concerning the Entire Lifespan of Lithium-Ion Batteries," Energies, MDPI, vol. 13(10), pages 1-15, May.
    20. Kowalska-Pyzalska, Anna & Kott, Joanna & Kott, Marek, 2020. "Why Polish market of alternative fuel vehicles (AFVs) is the smallest in Europe? SWOT analysis of opportunities and threats," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:serxxx:v:63:y:2018:i:02:n:s0217590817400185. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ser/ser.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.