Comparative study to investigate the relation between environmental policy mechanism and innovation in recycling of end-of-life (ELV): Case study of ELV technologies in Japan and EU

Event: The 12th Biennial International Conference on EcoBalance,The Institute of Life Cycle Assessment
Date: October 2016 (Kyoto TERRSA, Kyoto Japan)
Conference Proceeding

Each year, more than 25 million vehicles reach their end-of-life (ELV) throughout the world and this number is rising rapidly with time. Most of the developed countries like Japan and EU nations have strict policies to manage the ELV in efficient way. In this research we aim to clarify the impact of end-of life-vehicles (ELV) regulation on innovation in Japan and EU using patent as a proxy. In the analysis we find out whether there is any statistical difference in patent activity comparing the periods before and after the regulations were enacted. . In order to control for exogenous factors such as business cycles we also analyze the ratios of ELV and total environmental patents during the same periods as well as conducted regression analysis for strong evidence to prove our hypothesis. We also used the Revealed technological Advantage Index (RTA) to find the relative advantage of a country in ELV technology in reference to world patenting trends.
In future work, we will measure the potential environmental benefits of such regulation using recycling levels and landfill pressure as indicators and the outcomes of the analysis will be used to design hybrid model that can be applied in rapidly emerging economies like China.