This study aims to present the social costs caused by air pollutants excessively emitted on the road with the random setting of the exhaust gas reduction device by Company A. and the necessity and appropriateness of the introduction of on-road emission standards. For this purpose, this study first conducted a multifaceted analysis of the causes of the excessive emissions of on-road air pollutants of EURO-5 diesel passenger vehicles same as those of Company A.
This study estimated the costs of social damage by the excessive emissions of nitrogen oxides (NOx) overwhelmingly by diesel vehicles. It was checked with three cases, and this study judged that it would be necessary to make the malicious intentionality of Company A. that manipulated software so that the exhaust gas reduction device would not operate even in a case that falls under the condition of certification on the road and that it would be reasonable to see the larger amount of 78.2 billion won as the social cost Company A. caused.
Lastly, this study drew social benefits if on-road emission standards were introduced. As a result, the benefits accumulated nationwide between September 2017 and 2021 (about 5 years) would amount to 728 billion won. It is found that introducing on-road standards will prevent moral hazard like the case of Company A. and make a great contribution to the improvement of the atmospheric environment.
This study has the most significance in that it drew objective data that could be utilized for policy by estimating the social costs caused by nitrogen oxides excessively emitted by the act of