Economic consequences of the Home Appliance Eco-Point Program in Japan: a dynamic discrete choice approach

Daisuke Nishijima, Shigemi Kagawa, Keisuke Nansai, Masahiro Oguchi

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)

Abstract

This study combined a dynamic discrete choice model for air conditioner replacement decisions with an inter-industry model in order to evaluate the economic impact of Japan’s Home Appliance Eco-Point Program, an appliance replacement program that was in effect from May 2009 to March 2011. Focusing on air conditioners produced from 1995 to 1999 and replaced during the period from 2005 to 2013, we found that the eco-point program increased replacement probabilities by 1.5% to 1.9% in 2009. Moreover, the program produced an additional output of 31,337 million yen and a total value added of 21,259 million yen. However, the benefit–cost ratio–determined by dividing the increase in value added by the monetary value of the points awarded for appliance replacement–was only 0.68. From a cost-benefit perspective, the program can be judged not to have been an effective policy measure.

Original languageEnglish
Pages (from-to)4551-4563
Number of pages13
JournalApplied Economics
Volume51
Issue number41
DOIs
Publication statusPublished - Sept 2 2019

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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