Table of Contents Author Guidelines Submit a Manuscript
Discrete Dynamics in Nature and Society
Volume 2017, Article ID 4296250, 14 pages
https://doi.org/10.1155/2017/4296250
Research Article

Investment Policies to Extend the Life of Expressways in Japan

1Tokyo University of Science, Tokyo, Japan
2Osaka School of International Public Policy, Osaka, Japan

Correspondence should be addressed to Hideo Noda; pj.ca.sut.sr@adon

Received 25 January 2017; Revised 18 May 2017; Accepted 4 June 2017; Published 18 July 2017

Academic Editor: Manuel De la Sen

Copyright © 2017 Hideo Noda and Yuichi Osano. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This study examines the macroeconomic effects of investment policies aimed at extending the life of expressways in Japan based on a stochastic Ramsey model. The results of numerical analysis suggest that the benefits of life-extension investment in expressways can be increased by raising the level of maintenance intensity of expressways. The benefits of life-extension investment in expressways can be decomposed into the stock effect and the smoothing effect. Decomposition of life-extension benefits shows that the contribution of the stock effect is more than 90 percent, while that of the smoothing effect is less than 10 percent. The implementation of life-extension investment policies regarding expressways offers advantages in terms of reducing economic fluctuations and user charges. In addition, if relative risk aversion is high, efficiency is low and intergenerational equity is high. Furthermore, a higher level of technology leads to greater efficiency and intergenerational equity.