The Economic Evaluation of Policies for the Regulation of Automobile-related External Diseconomies with the Dynamic Computable General Equilibrium Model

Abstract

Recently, issues of external diseconomies caused by automobiles have been a world-wide great concern. The diffusion policy of clean energy vehicle is expected to reduce the volume of automobile among some policy options. We try to evaluate the diffusion policy of clean energy vehicle with the dynamic computable general equilibrium model. In this model, the learning effects of manufacturing clean energy vehicle industry and the measurement of externality regulatory benefits by diffusing clean energy vehicles are considered. In case studies, we cleared that the diffusion policy is effective for decreasing externalities, and the twice social net benefit is generated by providing the subsidy.