School of Environmental and Life Sciences, Toyohashi University of Technology, Japan
School of Architecture and Civil Engineering, Toyohashi University of Technology, Japan
After nearly a century with the internal combustion engine dominating the personal transportation sector, it now appears that the demands of Battery-based Electric Vehicles (BEVs) production are on the verge of experiencing rapid growth in Japan vehicle market. The broad-scale adoption of the BEVs could bring significant changes for our society in terms of moving the economics away from petroleum and lessoning the environmental footprint of transportation. However as Japanese economy strongly depends on the automobile industry, shifting production systems in the automobile industries influence not only the automobile industry but also other industries. Especially industrial regions where automobile firms are concentrated like in Toyohashi city in Japan will be affected by new production system. Thus, it is worth to acquaint with a new industrial structure for preventing the shortcoming by shifting production. In essence, this paper provides a computable general equilibrium (CGE) model to investigate the economic repercussion of BEVs production in the automobile industries, afterward suggests a new industrial formation to cope with the change of production system to BEVs in Toyohashi city in Japan. The most important database for CGE model calibration is a social accounting matrix (SAM). However input-output (I-O) table and the SAM are not available in Toyohashi city, thus the I-O table and SAM are also estimated in this study.