TY - JOUR
T1 - Effects of product replacement programs on climate change
AU - Nishijima, Daisuke
AU - Kagawa, Shigemi
AU - Nansai, Keisuke
AU - Oguchi, Masahiro
N1 - Funding Information:
This research was funded by a research grant from the Kyushu University Platform of Inter/Transdisciplinary Energy Research (Q-PIT), Grant-in-Aid for Scientific Research (A) [ 26241031 ], and Grant-in-Aid for Scientific Research (B) [ 26281056 ] from the Ministry of Education, Culture, Sports, Science and Technology of Japan . We thank two anonymous referees for their helpful comments on this manuscript.
Publisher Copyright:
© 2019 Elsevier Ltd
PY - 2019/6/1
Y1 - 2019/6/1
N2 - Product replacement programs promote the replacement of durable goods such as automobiles, home appliances and houses with new energy-efficient products using financial incentives such as subsidies. Many countries have implemented such programs to reduce environmental loads. These programs affect the point in time at which the decision to replace a product is made (and acted on) by consumers, which, in turn, influences the overall effectiveness of the program. Thus, in order to improve the policy design of these replacement programs, it is necessary to consider the mechanism of the consumer product replacement decision. This study examines the effects of the Japanese Home Appliance Eco-Point Program on the timing of household air conditioner replacements and the resulting GHG emission reduction effects and assesses the program's cost-effectiveness using a dynamic discrete choice model and an input–output model. We found that the program increased the air conditioner replacement rate by 1.5%–1.9% and reduced GHG emissions by 28,516 tCO 2 eq. However, the cost per ton of CO 2 eq reduced was approximately 978 US dollars, which is quite high compared to the GHG emission reduction costs of other programs. We conclude that the Home Appliance Eco-Point Program as constituted in 2009–2010 was not a cost-effective means to reduce GHG emissions and that appropriate policy coordination needs to be conducted in order to improve the cost-effectiveness of such programs in the future.
AB - Product replacement programs promote the replacement of durable goods such as automobiles, home appliances and houses with new energy-efficient products using financial incentives such as subsidies. Many countries have implemented such programs to reduce environmental loads. These programs affect the point in time at which the decision to replace a product is made (and acted on) by consumers, which, in turn, influences the overall effectiveness of the program. Thus, in order to improve the policy design of these replacement programs, it is necessary to consider the mechanism of the consumer product replacement decision. This study examines the effects of the Japanese Home Appliance Eco-Point Program on the timing of household air conditioner replacements and the resulting GHG emission reduction effects and assesses the program's cost-effectiveness using a dynamic discrete choice model and an input–output model. We found that the program increased the air conditioner replacement rate by 1.5%–1.9% and reduced GHG emissions by 28,516 tCO 2 eq. However, the cost per ton of CO 2 eq reduced was approximately 978 US dollars, which is quite high compared to the GHG emission reduction costs of other programs. We conclude that the Home Appliance Eco-Point Program as constituted in 2009–2010 was not a cost-effective means to reduce GHG emissions and that appropriate policy coordination needs to be conducted in order to improve the cost-effectiveness of such programs in the future.
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U2 - 10.1016/j.jclepro.2019.02.220
DO - 10.1016/j.jclepro.2019.02.220
M3 - Article
AN - SCOPUS:85062689173
VL - 221
SP - 157
EP - 166
JO - Journal of Cleaner Production
JF - Journal of Cleaner Production
SN - 0959-6526
ER -
