Environmental and Economic Impact on Scenario-Based Automotive Part Replacement: Case Study of Constant Velocity (CV) Joint Replacement in Korea

The objective of this study is to comprehensively evaluate the environmental and economic impacts of remanufactured constant velocity (CV) joints using a newly proposed framework for automotive parts replacement. This framework utilizes actual vehicle sales data to accurately estimate the demand for CV joint replacements. Specific parameters are established to calculate this demand, enabling a quantitative assessment of both environmental and economic impacts associated with remanufacturing CV joints and other automotive parts. Additionally, sensitivity analyses are conducted to explore the relationship between environmental benefits and economic outcomes, particularly focusing on the preferences for remanufactured parts and their profitability. The results indicate that increasing the proportion of remanufactured CV joints significantly benefits the environment by reducing CO2 emissions, raw material usage, and energy consumption. However, this shift also leads to a decrease in total profits within the CV joint replacement market. To address this trade-off, the study suggests that financial incentives, such as subsidies or tax benefits, are necessary to support the remanufacturing industry and facilitate market expansion. These findings provide valuable insights for policymakers aiming to promote sustainable manufacturing practices through effective subsidy policies.