Economic analysis of Japanese air pollution regulation: An optimal retirement problem under the vehicle type regulation in the NOx–particulate matter law |
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| Authors: | Kazuyuki Iwata Toshi H Arimura |
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| Institution: | 1. Population Council, New Delhi, India;2. National Institute for Research in Reproductive Health, Mumbai, India;3. Center on Gender Equity and Health, Division of Global Public Health, Department of Medicine, University of California San Diego, San Diego, USA;4. Department of Society, Human Development and Health, Harvard School of Public Health, Harvard University, Boston, USA;5. Joint Doctoral Program in Public Health (Global Health), San Diego State University/University of California, San Diego, USA;6. Department of Medicine, Section of General Internal Medicine, Clinical Addiction Research and Education, Boston University School of Medicine, Boston Medical Center, Boston, USA |
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| 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%. |
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