Abstract
This study conducted a cost-benefit analysis on the Motor-Vehicle Regulation in Automobile NOx-PM Law in Japan. As cost, thus, we estimated the economic cost of enforced the early retirement of vehicles from 2004 to 2024. To obtain a robust estimate on the cost, we used the car inspection data. Using the data set, we identify all regulated vehicles and calculated the cost of the early enforced retirement. The total cost imposed by the regulation is about 878 billion yen. In estimating the benefit due to the emission reduction, we used the same data set to identify the emission reduction per vehicle from 2004 to 2024. Then, we put monetary value to the emission reduction. The benefit of the NOx and PM reduction due to the regulation is found to be about 1395 billion yens. The total net benefit, which is used in evaluating validity of policy, is about 512 billion yens at point estimate. Consequently, the Motor-Vehicle Regulation in NOx-PM Law is validated from the viewpoint of cost-benefit analysis.
