REGIONAL DECOMPOSITION OF PRIVATE PASSENGER CAR USE UNDER A REDUCTION IN CO₂ EMISSIONS IN JAPAN

Abstract

 This paper analyzes changes in regional car kilometers traveled (CKT) per private passenger car under a reduction in CO₂ emissions in Japan by using the Modified Laspeyres Index (MLI) Decomposition. The decomposition shows that the dominant factor in a decrease in CKT per car over the period 2003-2008 is a fuel price increase in both urban and rural regions under a reduction in household income; however, changes in CKT per mini car are small over the period. Whereas, the dominant factor in an increase in CKT per car over the period 2010-2013 is an increase in fuel expenses per household under the decrease in household income. Needs of the mini cars are increasing in place of the standard and small cars, particularly in the rural regions where transport mostly relies on private passenger cars.