ETC installation and toll discounts in Japan

One of the Japanese government’s economic stimulus plans is to decrease the tolls on all roads to just 1,000 yen maximum per day on weekends and public holidays starting on the 28th or March, and from the 12th March 2009 they also introduced a subsidy of 5,250 yen for cars and 15,750 yen for motorcyclists who fitted ETC devices, Electronic Toll Collection devices, as the system only applies to ETC card holders. To see what people thought of this, DIMSDRIVE Research loooked at ETC purchase support system and toll road usage discounts.

Demographics

Between the 4th and 16th of April 2009 5,547 driving license-holding, and with a family car, members of the DIMSDRIVE monitor group completed a private online questionnaire. 52.9% of the sample were male, 0.2% aged 18 or 19, 11.8% in their twenties, 36.9% in their thirties, 29.9% in their forties, 14.9% in their fifties, and 6.3% aged sixty or older. 69.2% were the main users of a car, and the other 30.8% had access to the family vehicle.

Note that even without the discount system or for weekday usage, fitting an ETC makes sense as fees are slightly lower as you get charged for the exact distance you travel, not a rounded-up fee; on the Osaka to Kobe expressway, for instance, it is normally a flat fare of 700 yen, but with ETC if you only travel part-way you get a refund as you exit.

In Q9, it seems odd that even those without ETC will increase their usage.

One issue that gets swept under the carpet is the increase in CO2 and other pollutants caused by heavier vehicle usage, and also there may be heavier traffic, causing jams and higher fuel consumption from idling. Here’s an interesting set of figures found on Google about how small towns create disproportionate amounts of CO2.

Research results

Q1: Does your car have an ETC device installed? (Sample size=5,547)

Installed it before the discount system was introduced	50.5%
Installed it after the discount system was introduced (12th March 2009 onwards)	2.6%
Installed it but don’t use it	1.1%
Don’t have an ETC system	44.7%
Don’t know	1.1%

The next pair of questions were for those with ETC devices.

Q2A: Have you used the 1,000 yen discount scheme yet? (Sample size=3,069)

Used it	70.5%
Haven’t used it	29.5%

The use of it was highest in the most heavily built-up areas, not surprisingly, around Tokyo, Nagoya and Osaka.

Q2B: Have you used the 1,000 yen discount scheme yet? (by frequence of using toll roads) (Sample size=3,069)

	Used percentage
Almost every week N=135	89.6%
One or three times a month N=846	81.7%
Once every two or three months N=1,226	74.8%
Once every four to six months N=834	61.8%
Once every seven months to a year N=596	42.3%
Less than that N=933	30.0%
Don’t use N=977	23.7%

The next two questions were for those who used the subsidy to install an ETC device.

Q3: What was the main reason why you installed an ETC device using the subsidy? (Sample size=146)

Because the standard usage fees are cheaper	45.2%
Because the discount system was introduced	41.1%
Because I’d wanted to install it for a while	8.2%
Other	3.4%
Don’t know	2.1%

Q4: Before subsidy, how much did your ETC device cost? (Sample size=146)

Under 5,000 yen	13.2%
5,000 to 9,999 yen	25.7%
10,000 to 14,999 yen	29.4%
15,000 to 19,999 yen	22.8%
20,000 yen or more	8.8%

I think that Q4 includes installation.

The next question was for those who installed an ETC device during the subsidy period, but didn’t use the subsidy.

Q5: Why did you not use the subsidy when you got your ETC device installed? (Sample size=61, multiple answer)

Procedures were bothersome	24.6%
There were no shops supporting the system	24.6%
Didn’t know about the system	16.4%
Went to a shop supporting the system, but they were sold out	13.1%
Other	32.8%
Don’t know	3.3%

Q6: Do you want to use the subsidy to install an ETC device? (Sample size=2,478)

Really want to install	19.9%
Perhaps want to install	27.0%
Can’t say, don’t know	25.9%
Perhaps don’t want to install	13.2%
Don’t want to install at all	14.0%

Now, back to the full sample.

Q7: Did you know that from 28th March there was a discount scheme for road tolls introduced? (Sample size=5,547)

Knew about it	98.1%
Didn’t know about it	1.9%

Q8: Before the introduction of the discount scheme, how often did you use toll roads at weekends? (Sample size=5,547)

Almost every week	2.4%
One or three times a month	15.3%
Once every two or three months	22.1%
Once every four to six months	15.0%
Once every seven months to a year	10.7%
Less than that	16.8%
Don’t use	17.6%

Q9: Due to the introduction of the discount scheme, how will your use of toll roads at weekends change? (Sample size=5,547)

Will increase a lot	8.8%
Will increase a little	42.9%
Won’t increase	48.4%

Just over 60% of those in their twenties will increase their usage, whereas under 40% of those over sixty will. Overall, 64% of those with ETC will increase their usage, whereas only 37% of those without will.

Q10: Due to the introduction of the discount scheme, in what way will your use of toll roads at weekends change? (Sample size=5,547, multiple answer)

Have more opportunities to go to further-off places	36.3%
Will use toll roads more on weekends	34.6%
Will go on trips, drives more often	28.2%
Will use the car more when going out	17.2%
Will change my routes (not avoid toll roads)	10.2%
Will use trains less on weekends	3.5%
Will use toll roads less on weekdays	3.1%
Will use toll roads less on weekends	1.5%
Other	1.6%
No particular change	42.8%

The trend for all top five answers was that younger people will change their habits more. By area of residence, the biggest change would be for residents of the island of Shikoku. That island is connected to the mainland by quite expensive bridges, so that suggests that the tolls are reducing some of the worth of the bridges to the residents. The two mainland areas the other side of the bridges, Kinki and Chugoku, sees a similar prediction of increase in travel, so perhaps the effect works both ways.