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Hydro-Powered Vehicles in Japan

In: Social Issues

Submitted By FelixYoung
Words 1596
Pages 7
------------------------------------------------- hydro-powered vehicles in Japan
Felix Young
November 9, 2015

November 9, 2015

At the beginning of 2015, the Japanese government announced it would invest 40 billion yen to promote the use of hydrogen energy and hydro-powered vehicles ahead of the 2020 Tokyo Olympic Games (Mami Maruko, The Japan Times). Additionally, starting from 2016, consumers who purchase hydro-powered vehicle are going to receive subsidies worth 1 million yen in total (8300 USD). Using concepts such as law of demand, externality and market failures from an economic perspective, we are able to better interpret the reasoning behind these government policies as well as potential benefit and risk in the future. Japan is the third largest automobile market in the world with 4.7 million new cars registered annually (Statista Inc.). Among all the newly registered vehicles, only 30% of them use renewable energy such as hybrid fuels and electricity cells. Hydro-powered vehicle is still a relatively new concept to Japanese car market. However, replacing gasoline cars with hydrogen ones offer great benefit to the society. Thanks to the zero emission nature of hydrogen fuel, the greenhouse gas emission from the road will significantly go down. Environmental damage such as air pollution, acid rain and global warming can be reduced. Considering Japan’s high population density and urbanization state, environment is a topic that affects every citizen’s life quality. With the pollution emitted by cars going down, air quality and water quality of metropolitan areas will improve significantly. Improved citizen health will in return lower the burden of social welfare system in Japan. As a result, the social benefit of reduced environmental damage could be a great deal to the nation.

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