Life cycle cost analysis of end-off-life vehicle to examine the economic feasibility and management policy in Thailand

Abstract

A vehicle that is no longer used is called an End-of-Life Vehicle (ELV). ELV management is a crucial issue that is addressed by many countries who are keen to reduce waste and improve the ELV treatment process. In developed countries, regardless of the different policies they chose, ELV management is stable and systematic. In Thailand, there is no direct law or regulation for ELV management. In addition, the current policy promotes the use of old cars because the annual tax registration renewal fee is reduced from year six by ten percent every year to a maximum of fifty percent. Consequently, people tend to use cars for a very long period of time, which leads to ELVs not collected often. Furthermore, the few cars that are collected are not treated appropriately by an ELV management process. When discussing the ELV program, the costs related to ELV management must be mentioned. ELV management, when executed properly, can lead to a win-win situation from both economic and environmental perspectives. To better understand all the mentioned above, this study has 3 main objectives: 1) study ELV management status-quo in Thailand, and to investigate how people manage their unusable cars 2) analyze the life-cycle cost (LCC) of ELV from car owner and steel industry perspectives (not include cost of externality) and 3) propose an appropriate ELV management program for Thailand from costs perspective.

Questionnaires, secondary data, as well as field surveys are used to gain an understanding about how Thai people use cars, the status-quo in Thailand, and about the LCC of ELVs from steel industry and car owner perspective. Secondary data was collected to find the number of ELVs and related information. Life Cycle Cost analysis as well as information from field surveys, questionnaires, and secondary data, allows this study to make informed policy suggestion for ELV management in Thailand. The results show that the estimated number of ELVs in 2016 was approximately 84,000 ELVs with an increasing trend. ELV management status quo is based on market driven factors. There are many stakeholders who are involved in the business because all the car parts have value added. Also, if an ELV is sent for steel recycling, the value added is estimated approximately 16 baht/kg. Thus, instead of discarding an ELV along the street or in a garage, it is better to send it to steel industry. According to lessons learned from other developed countries, there are many steps towards sustainable ELV management with many stakeholders and policies related. ELVs should be promoted for suitable management. For the initial attempt to improve ELV management system in Thailand, this study suggested that car manufactures can contribute a recycling fee to the management fund or related organization to support a car owner and a recycler by applying Extended Producer Responsibility (EPR). The government should also try to frame or enhance standard of practices for dismantler and collectors.

Moreover, Department of Land Transport (DLT) can enforce the annual car registration fee to increase as car ages. A collaboration between DLT and Pollution Control Department (PCD) should standardize an annual inspection to be stricter, so car owners are responsible for maintaining their car to be in good condition during the use phase, thereby reducing particulate matter (PM 2.5). Department of Industrial Works (DIW) and PCD should regulate the stakeholders involved in dealing with ELVs to assure that the environment is not harmed. Policies should also be applied to car owners at use phase. Similarly, policies should be used on car manufacturers and recyclers during the manufacturing and recycling phases of a car to maintain standard of practice in the industries. With this policy change, average age of cars would expect to decrease. Proper collecting and management systems would definitely lead to a win-win situation.