• Environmental and Resource Economics Review
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• v.29 no.3
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• pp.313-333
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• 2020

This paper shows that when the exchange rate changes, there are conflicting effects on improving the quality and increasing market share of eco-friendly vehicles. In a vertically differentiated duopoly model consisting of high quality clean cars and low quality internal combustion engine cars, I set up a two-stage noncooperative game under perfect information that the quality levels and the prices of the cars are competitively determined. The vehicles are assumed to be produced in countries that use distinct currencies. When the exchange rate of the country that produces low quality cars rises, the producer prefers to intensify competition due to the relatively lowed cost, and the incentive for quality improvement arises from the intension of attempting to reduce the degree of differentiation of quality level. At this time, the clean car manufacturing firm tries to avoid competition due to weakened competitiveness, and increases the quality level to expand quality differentiation. However, in this case, the market share of eco-friendly vehicles shrinks. On the other hand, if the exchange rate changes in the opposite direction, the market share of eco-friendly vehicles is expected to increase, but the quality of both cars are deteriorated, causing a conflict effect.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.19 no.9
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• pp.474-481
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• 2018

The policy-making and technological development of eco-friendly automobiles designed to increase their supply is ongoing, but the internal combustion engine still accounts for approximately 95% of automobiles in use. To meet the stricter emission regulations of internal combustion engines based on fossil fuels, the proportion of after-treatments for vehicles and (ocean going) vessels is increasing continuously. As diesel engines have high power and good fuel economy in addition to less CO2 emissions, their market share is increasing not only in commercial vehicles, but also in passenger cars. Because of the characteristics of the diesel combustion, however, NOx is generated in localized high-temperature combustion regions, and particulates are formed in the zones of diffusion combustion. LNT and urea-SCR catalysts have been developed for the after-treatment of exhaust gas to reduce NOx in diesel vehicles. This study examined the effect of a containing promoter on SCR catalysts to cope with the severe exhaust gas regulation. The de-NOx performance of the Mn-SCR catalyst was the best, and the de-NOx performance was improved as the ion exchange rate between Mn ion and Zeolyst was good and the activation energy was low. The de-NOx performance of the 7Cu-15Ba/78Zeoyst catalyst was 32% at $200^{\circ}C$ and 30% at $500^{\circ}C$, and showed the highest performance. The NOx storage material of BaO loaded as a promoter was well dispersed in the Cu-SCR catalyst and the additional de-NOx performance of BaO was affected by the reduction reaction of the Cu-SCR catalyst. Among the three catalysts, the 7Cu-15Ba/Zeolyst SCR catalyst was resistant to thermal degradation. The same type of CuO due to thermal degradation migrates and agglomerates because BaO reduces the agglomeration of the main catalyst CuO particles.