Portfolio Analysis of Clean Energy Vehicles in Japan Considering Copper Recycling

Abstract

Several countries are moving toward carbon neutrality to mitigate climate change. The introduction of clean energy vehicles (CEVs) is a measure to offset the adverse effects of global warming. However, each CEV has its strengths and weaknesses. An optimal CEV portfolio must be formulated to create effective policies that promote innovative technologies and introduce them into the market. CEVs also consume more copper than gasoline vehicles. Copper is associated with supply risks, which most previous conventional studies have failed to address. Therefore, this study proposes a novel CEV optimization model for sustainable consumption of copper resources through recycling along with reduction of CO2 emissions. This study aims to analyze the optimal portfolio for domestic passenger vehicles and the assumed effects of copper recycling and usage reduction. For this analysis, this study set up scenarios for the recycling rate of copper contained in end-of-life vehicles and the reduction rate of copper used in newly sold vehicles. Our simulation results showed that increased recycling rates and reduced use of copper are necessary for the diffusion of battery electric vehicles. Furthermore, the simulation results indicated that if these improvements are not implemented, the deployment of fuel cell vehicles needs to be accelerated.