Economic impacts of hybrid and electric vehicles in Japan and china: National and multi-regional input-output applications

Abstract

This paper examines the economic impacts of technological innovations in the motor vehicle industry in Japan and China. The motor vehicle industry has developed environmentally friendly vehicles in the face of concerns over global warming and petroleum exhaustion. A new type of motor vehicle will likely become popular, and the industrial sector be affected by its appearance. Since the Japanese economy heavily depends on the motor vehicle industry, the advent of a new age in the automotive industry will have a significant impact not merely on the motor vehicle industry, but on other industries as well. Meanwhile, in China, the motor vehicle industry is rapidly expanding, and environmentally friendly vehicles have recently come into use. In this study, we explored the economic impacts of a shift in the production system of the motor vehicle industry from conventional technology to electric and hybrid vehicle technology. The automotive industries in China and Japan are mutually dependent on the availability of technology and resources in each country. Therefore, it is also important to examine how best to build a relationship of competitive coexistence between the two nations, and this paper estimates the economic impacts of changes in China-Japan trade in the automotive industry. © (JSRSAI) 2013.