TY - JOUR
T1 - Does product lifetime extension increase our income at the expense of energy consumption?
AU - Kagawa, Shigemi
AU - Nansai, Keisuke
AU - Kudoh, Yuki
N1 - Funding Information:
An early version of this paper was prepared for the 18th Conference of the Pan Pacific Association of Input–Output Studies, Nagoya, in November 2007. We gratefully acknowledge the helpful comments from Kazumi Hitomi (Central Research Institute of Electric Power Industry (CRIEPI)), Hiroshi Taguchi (Institute of Regional Information Systems), and Hajime Inamura (Tohoku University). We also thank two anonymous referees for the constructive comments and helpful suggestions. This research has been supported by Grants-in-Aid for research (No. 19710044) from the Ministry of Education, Culture, Sports, Science and Technology in Japan.
PY - 2009/3
Y1 - 2009/3
N2 - The present paper contributes to modeling a simple social accounting method with cumulative product lifetime distributions and argues how product lifetime extension affects income flow throughout the entire economic system. Empirical analysis focusing on automobile use (ordinary passenger vehicle, small passenger vehicle, and light passenger vehicle) in Japan revealed that if all of the additional income gain from product lifetime extension flows into the investment sector, a one-year lifetime extension during the ten years of the study period (1990-2000) would have led to an increase in income in 2000 amounting to + 7 billion yen, as well as contributing to savings in energy amounting to - 4 × 106 GJ. That is, longer-term passenger vehicle use increases income and decreases energy consumption under special cases. We also found that in the general case when less than 93% of additional income resulting from vehicle lifetime extension is directed to the investment sector, a + 1 year automobile lifetime extension increases income at the expense of energy consumption.
AB - The present paper contributes to modeling a simple social accounting method with cumulative product lifetime distributions and argues how product lifetime extension affects income flow throughout the entire economic system. Empirical analysis focusing on automobile use (ordinary passenger vehicle, small passenger vehicle, and light passenger vehicle) in Japan revealed that if all of the additional income gain from product lifetime extension flows into the investment sector, a one-year lifetime extension during the ten years of the study period (1990-2000) would have led to an increase in income in 2000 amounting to + 7 billion yen, as well as contributing to savings in energy amounting to - 4 × 106 GJ. That is, longer-term passenger vehicle use increases income and decreases energy consumption under special cases. We also found that in the general case when less than 93% of additional income resulting from vehicle lifetime extension is directed to the investment sector, a + 1 year automobile lifetime extension increases income at the expense of energy consumption.
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U2 - 10.1016/j.eneco.2008.08.011
DO - 10.1016/j.eneco.2008.08.011
M3 - Article
AN - SCOPUS:58549083737
VL - 31
SP - 197
EP - 210
JO - Energy Economics
JF - Energy Economics
SN - 0140-9883
IS - 2
ER -