NOx Reduction Effects of the Policy to Reduce Diesel Automobiles and its Influence on Price Change

Abstract

With NOx emissions being greater from diesel than gasoline engines the possibility is being considered in Japan of reducing the number of diesel vehicles. This paper describes a model which predicts the number of diesel vehicles and NOx volume and the impact of policies to reduce diesel vehicles. The impact on cars and small trucks is considered. Three policies are tested: a) an end to the production of diesel vehicles, b) an increase in diesel oil price and c) an upper age limit on the use of diesel vehicles. The results are discussed with particular reference to the effect on commodity prices. The final recommendation is that fuel prices be increased by 120%. For the covering abstract see IRRD 883195.