Finding a Linkage between Environmental Policy
Instrument and Innovations: Study in End-of-Life Vehicles
Technologies in Japan
Univeristy of Tsukuba SINGH Rajeev Kumar
Univesity of Tsukuba

YABAR Helmut

University of Tsukuba

HIGANO Yoshiro

University of Tsukuba

MIZUNOYA Takeshi

Abstract:
This research analyze the effect of environmental polices related to end-of-life vehicles (ELV) on
environmental innovations in Japan. We used the patent data as proxy to find the linkage between
the ELV policies and the environmental innovation. The Japanese ELV data was collected anddivided into periods before and after the regulations. The statistical analysis of ELV patents before
and after the ELV policies was made to find the difference in the environmental innovation.

Finding a Linkage between Environmental Policy
Instrument and Innovations: Study in End-of-Life Vehicles
Technologies in Japan
Univeristy of Tsukuba SINGH Rajeev Kumar
Univesity of Tsukuba

YABAR Helmut

University of Tsukuba

HIGANO Yoshiro

University of Tsukuba

MIZUNOYA Takeshi

Introduction:
ELV is considered municipal waste in Japan and comprises around 10% of total municipal waste
which is extremely large. The ELV consists of harmful materials and chemicals which requires
recycling experts, recovery of materials as well as proper treatment and disposal of these harmful
materials in order to protect the environment and human health. So, proper ELV policy focusing
on proper treatment and disposal of harmful materials, recycling and recovery of materials is very
important.
The recycling measures for End-of-Life Vehicles
The End-of-Life Vehicle (ELV) Recycling Law was passed in 2002, partially enforced in 2003 andfully enforced in 2005 with recovery and recycling of a) Fluorocarbons b) Airbags c) ASR. Thetarget for Airbag recycling was set 85% from 2005 onwards and for ASR was set at 30% by 2005,50% by 2010 and 70% by 2015. Airbag recycling reached 93.4% and 93.8% in 2005 and 2014
respectively. The ASR recycling target was surpassed with 62.8% in 2005, 82.5% in 2010 and97.5% in 2014 due to advancement and development in design of automobiles and improvement
in recycling efficiency of ASR (JARC, 2015).

Illegal dumping of industrial waste on Teshima Island
The illegal dumping of industrial waste including waste from automobiles on Teshima Island
forced the government to revise the Waste Management and Public Cleansing Law in 1994. Before
this, the ASR was thrown into inert landfill sites but after revision of the law it was compulsory tothrow ASR into controlled landfill sites from 1996. The management cost of the controlled landfill
sites was more expensive than the inert landfill sites. As a result the manufacturers wanted to reduce
the ASR volume and lower the treatment cost which also contributed to innovation in drasticallyreducing ASR. Furthermore, the Japanese Automobile Manufacturers Association (JAMA) set atarget to reduce the total auto plant generated waste going to Landfill from 352,000 tons in 1990
as the base year to 10,000 tons by 2015. They already surpassed this target by 2005 and reached1,300 tons by 2011.
Model specification
In order to determine if ELV regulations are the major drivers of ELV innovation, we identified
the relevant patents related to ELV recycling and the Total Environmental Patents. We then used
a Japanese data base to find their patent counts. We use specific codes for each ELV patents’ groups
for simplicity during the statistical analysis.

Paired samples t-test results for group of patents before and during regulation, and duringregulation

andafterthetarget

weremade.

Figure 1: Paired sample t-test results for group of patents before and during ELV regulation

Figure 2: Paired sample t-test results for group of patents during and after ELV regulation
In the t-test of the group before and during the ELV regulation, there was a significant difference
for the majority of the patents at a 99% confidence interval. The patents in pair 2 and pair 8 arerelated to the recycling of polyurethane which is also used in home appliances such as refrigerators.
So, most probably the technology for polyurethane was introduced after the application of theHome Appliance Law in 1998 due to the advancement in the technology before the introduction of
the ELV recycling law in 2002. Moreover, the t-test between the ELV technological patents during
the regulation and after the targets were met shows that the patent count was higher during theregulation period with significance at the 99% confidence interval. So, we find that the number of
ELV related technological patents in general are larger than in the period before the regulation andthe after the regulation target were made.
The statistical results show that the number of related patents to ELV recycling is larger during theELV regulation period as compared to before and after regulation. The result indicates that theELV regulations were effective but once the targets were met innovation slows due to a lack ofincentives for further innovation.
Note: This is a part of full-length paper which has been sent to Journal Title “Environment
Innovation and societal Transitions”.