Elizangela Maria Menegassi De Lima

Jose Benedito Sacomano

Ana Paula De Lima Da Silva

Cluster Competitiveness Analysis: A Brazilian Case

Keywords: Cluster, Competitiveness Factors, Cluster Ranking

The objective of this study was to compare the factors related to the development stage and the level of competitiveness of the furniture cluster located in the northwestern region of Paraná / Brazil. For the development of the research, descriptive approaches with quantitative and qualitative procedures were used. As a data collection instrument, a cross-sectional survey was applied with 20 companies in the sector. The data were interpreted from a statistical analysis using the average of the relative frequencies. The results indicated that the competitiveness index is unfavorable and the cluster is in initial stage, pointing out fragility, mainly in the item government policies.

Introduction

Organizations need competitiveness to manage their businesses, in face of the turbulence imposed by the globalized economic environment [START_REF] Porter | Location, Competition, and Economic Development: Local Clusters in a Global Economy[END_REF]. In addition, companies are seeking to adjust to the new competitiveness standards, to the impact of technologies on competitiveness, to cultural influences and to different interfering factors in the organizations routines [START_REF] Tilahun | Transit and Job Accessibility: an Empirical Study of Access to Competitive Clusters and Regional Growth Strategies for Enhancing Transit Accessibility[END_REF][START_REF] Huggins | Network capital, social capital and knowledge flow: how the nature of inter-organizational networks impacts on innovation[END_REF].

The management of local productive arrangements (LPA), through collective actions between the companies, whether they are suppliers of goods or services, is an impressible strategy to obtain competitive advantages in the local markets, contributing considerably to the increase of companies' profitability and growth [START_REF] Porter | Location, Competition, and Economic Development: Local Clusters in a Global Economy[END_REF][START_REF] Marshall | Principles of Economics[END_REF][START_REF] Söylemezoglu | Are Clusters Efficiente for the Relation Betweem Milk Production and Value Added per Capita in Regional Level? An Empirical Assessment[END_REF]. However, the analysis of competitiveness in productive agglomerations is based on human capital, governance, logistics infrastructure, collective efficiency, productive cooperation, technological innovation, quality, productivity, government policies and training programs.

The aim of this study is comparing factors related to the development stages and the level of competitiveness in the Northwestern Paraná furniture cluster. For this, a survey was applied to the companies belonging to the sector under study, considering the internal and external factors involved in the competitiveness context, for the analysis of the level of maturity of the cluster. It is inferred that the analysis of the pro-posed factors allows determining the capacity of the companies in the sector, aiming at the development of competitive advantages and strategies that are feasible for the growth and development of the local and regional economy.

2

Literature Review

Competitive Clusters

The formation of regional clusters and local productive systems are strategies of geographic concentrations of companies and institutions interconnected in a particular field, involving suppliers, machines, services and infrastructure, to provide conditions of competitiveness [START_REF] Porter | Location, Competition, and Economic Development: Local Clusters in a Global Economy[END_REF][START_REF] Marshall | Principles of Economics[END_REF].

Clusters promote competition and co-operation among firms to engage and retain customers [START_REF] Porter | Location, Competition, and Economic Development: Local Clusters in a Global Economy[END_REF][START_REF] Huggins | Competition, Competitive Advantage and Clusters: The Ideas of Michael Porter[END_REF]. Cooperation is carried out vertically, involving related companies and local institutions. Basically, the arrangements affect the competitiveness in three levels: increase of the productivity of the companies, direction and pace of the innovations and stimulation of the formation of new businesses [START_REF] Porter | Location, Competition, and Economic Development: Local Clusters in a Global Economy[END_REF][START_REF] Neto | Gestão de Sistemas Locais de Produção e Inovação (clusters/APLS): um Modelo de Referência[END_REF].

Clusters can be classified according to the stage of development, offering subsidies for the development of related public policies [START_REF] Neto | Gestão de Sistemas Locais de Produção e Inovação (clusters/APLS): um Modelo de Referência[END_REF][START_REF] Oliveira | Pequenas empresas, arranjos produtivos locais (APLs) e sustentabilidade[END_REF].

The stages specified in Figure 1 below show that in the initial stage called precluster, firms and industries are independent existing a regional concentration of the same productive chain; and at the emergent stage, the cluster is at the beginning of the development process, anticipating a possible overrun of the embryonic stage, with the government acting for the regional industry with the consequent action of incentive policies. The expanding cluster increases the links between companies by promoting the growth of collective actions between them. At this stage, local actors actively participate in support mechanisms to attract potential domestic and international competitors to the cluster. In the last stage, understood as a mature cluster, there is a phase of maturity in the institutional, commercial, industrial, environmental and local sphere with solid mechanisms of information sharing, inter-company cooperation and diffusion of innovation and knowledge [START_REF] Neto | Gestão de Sistemas Locais de Produção e Inovação (clusters/APLS): um Modelo de Referência[END_REF][START_REF] Oliveira | Pequenas empresas, arranjos produtivos locais (APLs) e sustentabilidade[END_REF]. The arrangements favor cooperation, solidarity and reciprocity, with the presence of local institutions to understand and sustain the systems. Some conditions are rele-vant to the development of arrangements such as the significant number of firms and agents, specialization in a specific productive activity, as well as the existence of skilled local labor and correlated activities [START_REF] Neto | Gestão de Sistemas Locais de Produção e Inovação (clusters/APLS): um Modelo de Referência[END_REF][START_REF] Negrusa | Innovative tools used business networks and clusters in communication[END_REF][START_REF] Vandarlier | Strategic approach to human resources management during crisis[END_REF].

Competitiveness Factors among Cluster Operating Systems

Following, is presented factors of analysis related to the competitiveness of an agglomeration, which serves as a reference for a possible assessment of this study.

Human Capital. Organizations with dynamic environments are constantly changing to develop and empower people, aiming to obtain better results in the activities developed, with investments in education, incorporation of centers and even universities to offer training and development of people [START_REF] Vandarlier | Strategic approach to human resources management during crisis[END_REF][START_REF] Becher | A risk perspective on human resource management: a review and directions for future research[END_REF].

Governance. This concept is linked to the idea of development management that consists of a set of mechanisms of administration of a social system and organized actions, with the intention of guaranteeing security, prosperity, coherence, order and continuity of the system itself [START_REF] Neto | Administraçao com qualidade: conhecimentos necessarios para a gestao moderna[END_REF]. Therefore, governance advocates viable forms of administration to meet the aspirations of most of the people (actors) involved, leading to healthy management of business development [START_REF] Neto | Gestão de Sistemas Locais de Produção e Inovação (clusters/APLS): um Modelo de Referência[END_REF][START_REF] Neto | Administraçao com qualidade: conhecimentos necessarios para a gestao moderna[END_REF]. This concept is linked to the idea of development management.

Logistic Infrastructure. This expression aims to analyze the set of facilities (factories and storage points) and means of transportation used by the supply chain of the productive arrangement to achieve objectives. The logistic factor is a key element in supply chain considerations and in the movement of products and materials to organizations [START_REF] Reis | Qualidade em redes de suprimentos: a qualidade aplicada ao suplly chain management[END_REF]. This way, the more strategic the cluster is in relation to its location, the better its competitiveness in the market will be.

Collective Efficiency

The collective actions in networks, associations, agglomerations imply opportunities and risks. They exist in a group of different agents, connected to each other, for distinct reasons, which may be financial, technological, cultural, among others [START_REF] Olson | A Lógica da Ação Coletiva: os Benefícios Públicos e uma Teoria dos Grupos Sociais[END_REF]. In a competitive scenario which is complex and unpredictable, small and medium-size businesses may find difficulty to achieve their goals. Collective initiatives contribute to overcome such difficulties [15].

Intercompany Cooperation. This system of cooperation is based on a set of independent small businesses, organized in a local and / or regional basis. These individual companies use local institutions, integrating relationships, competition and cooperation [START_REF] Williams | Cooperation by design: structure and cooperation in interorganizational networks[END_REF]17]. Sharing a value activity, results in a significant cost advantage, presenting an important fraction of assets or operating costs.

Technologic Innovation. The management of technology uses administration techniques in order to maximize the technological potential as a support tool for the organization, contributing to cost reduction, improvement in the development of products and reducing lead times for innovations [START_REF] Neto | Gestão de Sistemas Locais de Produção e Inovação (clusters/APLS): um Modelo de Referência[END_REF][START_REF] Fundeanu | The Impact of Regional Innovative Cluters on Competitiveness[END_REF]. When it comes to clusters, this element is necessary for a competitive activity, considering that over time the technological of companies tends to become outdated, anachronistic and obsolete [START_REF] Neto | Gestão de Sistemas Locais de Produção e Inovação (clusters/APLS): um Modelo de Referência[END_REF].

Quality. Quality in the production process is determined and perceived by the customer, being decisive at the moment of purchase. Quality control is essential to ensure product reliability, compliance, durability and aesthetics [START_REF] Neto | Administraçao com qualidade: conhecimentos necessarios para a gestao moderna[END_REF][START_REF] Reis | Qualidade em redes de suprimentos: a qualidade aplicada ao suplly chain management[END_REF].

Productivity. Productivity is crucial in the company competitiveness to measure the efficiency of an operational system, in relation to its products and goods used in the production. Productivity efficiency is developed when there is collaboration among employees, making the values of the company be verified in all its hierarchy levels, making productivity a collective goal [START_REF] Reis | Qualidade em redes de suprimentos: a qualidade aplicada ao suplly chain management[END_REF].

Government Institutions (Support Policies). Interaction and cooperation among companies is overriding for the development, promoting collective actions and information sharing, knowledge and infrastructure. External support institutions belonging to the cluster involve public institutions (local, regional and federal), entities, fomentation agencies, support institutions and associations representing the company in the several branches of the chain [START_REF] Söylemezoglu | Are Clusters Efficiente for the Relation Betweem Milk Production and Value Added per Capita in Regional Level? An Empirical Assessment[END_REF][START_REF] Tsai-Ju | Local clusters of SOEs, POEs, and FIEs, internacional experience, and the performece of foreign firms operating in the emerging economies[END_REF].

Training Programs. Such programs contribute to show the strategic profile of the company to all its staff, integrating and stimulating differences and promoting quality in the operations. The maintenance and development of staff are the pillars of sustainability of any organization. Considering that the companies need to have as goals a good strategic plan and investments in programs which aim at a great operational climate and the guarantee of financial return [START_REF] Bohlander | Administracao de recursos humanos[END_REF].

Methodology

This study was applied in the furniture sector of the region of Umuarama, located in the south of Brazil. The approach was descriptive, with quantitative and qualitative procedures, using the survey, aiming to contribute to the knowledge of a particular area of interest, through the collection of data/information about individuals or the environment.

In the data collection phase, 20 structured questionnaires were applied to the managers of the companies belonging to the agglomeration studied, in the second semester of 2016, containing closed questions using Likert scale of five points, to analyze the competitiveness factors and the development stage of the furniture cluster.

The relative frequency average was used as statistical tool. Let f(i) be the relative frequency over the competitiveness level of the cluster under study, covering a range [0, 100%] over real numbers. Let X Fr be measured on a semantic scale, then the average of the relative frequencies (X Fr ) can be calculated with the aid of Eq. 1 below:

∑ ∑ (1)
Where i = -2, -1, 0, 1, 2,..., n; n Z, is the weight attributed to the level of competitiveness on the semantic scale, where zero is the equilibrium (origin) and f(i) is the relative frequency on the level i and k is the number of variables with j = 1, 2,..., k, under these conditions, X Fr [-100%, 100%] in the real numbers.

To better understand the results obtained in the statistical analysis, a scale divided into eight intervals was constructed to measure competitiveness, as shown in Figure 2.

Results and Discussion

In the area of furniture, the Paraná currently has three local productive arrangements, in the north, northwest and southwest. This survey focused on the furniture sector of the northwest region, on competitive factors. Out of the companies interviewed, 47% are in the upholstery furniture sector; 39% represent the mattresses business; and 14% are part of the tailored furniture. This sector is representative in the local economy. The wood and furniture industries represent 19% of the region's commercial establishments, directly creating one thousand three hundred and forty-nine jobs. The levels of satisfaction, in relation to competitiveness factors, have been measured and tabulated, in percentage, according to Table 1 below.

Table 1. Analyzis of Competitiveness Factors (in percentage).

Assigning weight in a weighted way (appalling -2, bad -1, average 0, good +1, excellent +2) according to the results obtained, on the internal side Figure 3 shows the low competitiveness; and on the external side aspects of high competitiveness. According to the image above, the results show positive and negative answers, in relation to the competitiveness elements. Among the positive items are logistic infrastructure (Q3) and quality (Q7). Among the negative items are government policies (Q9) and training programs (Q10).

The logistic infrastructure has as a sum of good and excellent results in 75% of the answers, indicating that it is a highly competitive element. This item is related to the physical distribution of products, both internal and external, storage, and layout of work tools within the company.

The quality aspect was the excellence of 40% of its responses, and represents one of the elements invested by entrepreneurs in the region as a competitive advantage; another 40% assessed quality as average, evidencing the discrepancy between the priorities of the companies.

In government policies, 70% of the answers were assessed as appalling, representing the worst result in the survey. External influence is a factor which makes competitiveness hard.

As for training programs developed in the cluster, 50% of the interviewed assessed this item as appalling. It was found that cluster managers do not invest in the development and training of their staff, which may lead to demotivation.

In general, the relative frequency average was carried on according to Eq. 2, and the results obtained are shown in Figure 4. An assessment conducted with the cluster managers on competitiveness, related to the above-mentioned items, resulted in -12.5%, obtained by the relative frequency average. It was concluded that it is an unfavorable result, according to the scale used to assess the Relative Frequencies Average. In such analysis, it can be inferred that the answers of managers tend to be more negative, rather than positive.

Conclusion

The competitive analysis in the furniture sector, in relation to companies from the cluster, contributes to the obtaining of a view closer to reality about the strengths and weaknesses of the local productive arrangement, aiming at the possibility of collective actions directed to furniture companies. This study showed that the stage of development of the furniture cluster in Umuarama, Paraná/Brazil is still embryonic. The analysis of competitive elements showed an unfavorable percentage.

Such analysis requires actions for the development and growth of the local economy. In this way, the importance of the study of corporate networks is noticeable, since new forms of governance in productive arrangements are frequent nowadays, as a way of expanding and generating competitive advantages for the companies participating in the local arrangements.

Fig. 1 .

 1 Fig. 1. Cluster classification.

Fig. 2 .

 2 Fig. 2. Low and High Competitiveness Scale.

Fig. 1 .

 1 Fig. 1. Graphic Representation of Relative Frequency.

( 2 )Fig. 4 .

 24 Fig. 4. Average Relative Frequency Result.


Kamila Romejko
email: kamilarr@gmail.com

Masaru Nakano
email: nakano@sdm.keio.ac.jp

case study on Japan, China, UK and Poland

Keywords: Production, Electric Vehicles, Life Cycle Assessment, Health Issues, Emissions, Air pollution

In recent years the topic of air pollution is gaining more attention due to the health effects its has on human lives. At the same time, we can observe popularization of Electric Vehicles (EVs), due to their environmental and economic benefits. However, a few studies suggest that EVs might be not environmental friendly in the long term. Hence, there is a need to investigate the emissions produced by EVs and the monetary cost of them on the health. This paper aims to quantify the cost of health diseases by employing life cycle assessment of EVs in Japan, China, Poland and the United Kingdom. The results of the study imply that the total cost of health issues is lower when import of EVs is from the nearby countries, which generate electricity from clean energy resources or when it is produced in a low emission country locally.

Introduction

Air pollution is one of the top greatest risk factors for human health. According to pundits, roughly 6.5 million premature deaths are the aftermath of air pollution [START_REF]Energy and Air Pollution[END_REF]. The cost of the health problems originating from air pollution stood at $330-940B in 2010 for European Union [START_REF]Clean Air Policy Package[END_REF]. Industry, power plants, households, transport, agriculture and waste treatment are human-made sources of air pollution [START_REF]Energy and Air Pollution[END_REF]. Inefficient fuel combustion, residential heating, vehicles exacerbate the impact of emissions [START_REF] Romejko | Life Cycle Analysis of Emissions from Electric and Gasoline Vehicles in Different Regions (to be published)[END_REF].

Those activities cause emissions e.g. sulfur oxides (SO 2 ), particulate matter (PM) and nitrogen oxides (NO x ). More than a quarter of total energy-related emissions of SO 2 are made in China [START_REF]Energy and Air Pollution[END_REF]. Transportation attributes to over 50% of all energy-related emission of NO x . For instance, only in China, more than 1 million premature deaths were recorded due to outdoor air pollution caused by particulate matter. In the European Union, more than 175,000 were recorded due to outdoor air pollution caused by PM. At the same time, it was more than 1 million in China [START_REF]Energy and Air Pollution[END_REF]. In 2014 in Cracow (Poland), there were 188 days, in which PM was higher than advised 50 µg/m3. In January 2017, in Warsaw (Poland), the PM level was seven times above the secure PM level described by World Health Organization (WHO) [4]. According to [START_REF] Korzhenevych | Update of the Handbook on External Costs of Transport[END_REF], the most common impacts of pollutants are chronic mortality and acute and chronic morbidity, which are caused by i.e. respiratory problems, asthma, cardio-pulmonary, leukaemia, ear infections etc. In this study SO 2 , PM and NO x are investigated, because they are the main pollutants, which damage cost is the highest among all primary pollutants [START_REF] Korzhenevych | Update of the Handbook on External Costs of Transport[END_REF]. Moreover, there are international standards in road transportation for the emission of those pollutants [START_REF] Korzhenevych | Update of the Handbook on External Costs of Transport[END_REF]. Alternative Fuel Vehicles (AFVs) are getting attention due to their environmental and economic advantages. However, there is a need to investigate the benefits and impact of AFVs during not only use phase, but at stake is the total lifecycle assessment of these vehicles. Wide studies have investigated the introduction, proliferation and portfolio of AFVs [START_REF] Nonaka | Carbon Taxation Using LCCO2 and LCC for Clean Energy Vehicles[END_REF][START_REF] Brady | Travel to work in Dublin. The potential impacts of electric vehicles on climate change and urban air quality[END_REF][START_REF] Zhao | The economic competitiveness and emissions of battery electric vehicles in China[END_REF][START_REF] Faria | Impact of the electricity mix and use pro fi le in the life-cycle assessment of electric vehicles[END_REF]. Only a few of papers have focused on the impact of AFVs on air pollution. However, most of the studies focus on GHG emissions and neglect other pollutants e.g. SO 2 , PM and NO x [START_REF] Ou | Scenario analysis on alternative fuel/vehicle for China's future road transport: Life-cycle energy demand and GHG emissions[END_REF][START_REF] Samaras | Life Cycle Assessment of Greenhouse Gas Emissions from Plug-in Hybrid Vehicles : Implications for Policy Life Cycle Assessment of Greenhouse Gas Emissions from Plug-in Hybrid Vehicles : Implications for Policy[END_REF]. A Life Cycle Assessment (LCA) study by Hawkins et.al [START_REF] Hawkins | Comparative Environmental Life Cycle Assessment of Conventional and Electric Vehicles[END_REF] provided a thorough analysis of EV over their total life cycle and their impact on different environmental categories. Nevertheless, the health impact of EVs was not considered in that research [START_REF] Hawkins | Comparative Environmental Life Cycle Assessment of Conventional and Electric Vehicles[END_REF]. Health effects are neglected in most of the studies, only [START_REF] Guo | Estimation of economic costs of particulate air pollution from road transport in China[END_REF][START_REF] Yang | Fuel demand, road transport pollution emissions and residents' health losses in the transitional China[END_REF] conducted the analysis while incorporating the effects of vehicles on health issues. However, the before-mentioned studies concentrate on only one country, China. Moreover, most of the papers investigate only one stage of vehicle's lifecycle, mostly usage [START_REF] Brady | Travel to work in Dublin. The potential impacts of electric vehicles on climate change and urban air quality[END_REF][START_REF] Howey | Comparative measurements of the energy consumption of 51 electric, hybrid and internal combustion engine vehicles[END_REF]. In this paper, we consider environmental leakage, which happens when rich country imports dirty products from developing countries. This phenomenon leads to displacement of emissions abroad and often an increase in the global pollution [START_REF] Faehn | Richer and cleaner-At others' expense?[END_REF]. According to [START_REF] Ghertner | Trading away damage: Quantifying environmental leakage through consumption-based, life-cycle analysis[END_REF], the consumption-based approach is necessary to calculate the impact of production activities. There has been no study conducted on environmental leakage and the production of AFVs. Therefore, there is a necessity to examine the above-mentioned gaps. Hence, in this study, we quantify environmental leakage according to consumption-based approach and base the calculations on 'who consumes the product'. Therefore, the objective of this study is that it estimates the health effects cost of EVs throughout the total lifecycle and compares it among several countries while taking into consideration environmental leakage. This study might help governments and producers while making crucial decisions for long-term investments. The results might encourage switching to EVs, and in order to do that, governments can implement either subsidy or environmental tax deduction. For this purpose, governments need to create target for policy creation, which was already studied by [START_REF] Nonaka | Carbon Taxation Using LCCO2 and LCC for Clean Energy Vehicles[END_REF][START_REF] Nakano | Design of Taxation to Promote Electric Vehicles in Singapore[END_REF]. The case study was conducted on Japan, China, Poland and the United Kingdom (UK). According to [START_REF]Global EV Outlook[END_REF], China, UK and Japan are the countries with the largest EV sales and market share till 2015. Moreover, China was the largest market for electric cars with over 200 000 new registrations [START_REF]Global EV Outlook[END_REF]. However, in China, most of electricity is produced from coal and according to [START_REF] Ji | Electric vehicles in China: Emissions and health impacts[END_REF] EVs could hinder health and the environment quality [START_REF] Ji | Electric vehicles in China: Emissions and health impacts[END_REF]. Japan is a country, which produces Nissan Leaf, the Nissan LEAF, which is the world's best-selling EV [START_REF]PRESS Realease: Nissan Intelligent Mobility at CES[END_REF]. The United Kingdom is not a main automotive producer, but invites investment from manufacturers, moreover its electricity mix consist of high percentage of renewables [START_REF]Electricity Information 2016[END_REF]. On the other hand, Poland's electricity is based on coal and the air pollution is high. Poland has just established an "Electromobility Development Plan for Poland", which implies that till 2025 there will be a million EVs on the polish roads. The government of Poland is also interested in investment in automotive industry [START_REF]Electromobility Development Plan for Poland[END_REF]. Section 2 explains the LCA method for evaluation of health cost of EVs. The results and discussion are presented in Section 3. Finally, Section 4 concludes the research.

Methods

Life cycle assessment outline

The LCA is the most broadly used tool for analyzing vehicles throughout different stages of their lifetime. This method was used in this paper to quantify the health impact of EVs during their manufacturing stage, transport, use phase and end of life stage. The case study was conducted for four countries and includes environmental leakage issues. In line with it, we calculate 16 cases of vehicle life cycle. EVs are used during a 10-year period. Moreover, the scenarios for 2016 and 2025 are being investigated as well in order to compare the improvements in the technologies. The evaluation formula of LCA is shown in Eqs. ( 1)-( 5).

(1)

𝐿𝐶𝐴 !,! !"!#$ 𝑦 = 𝐿𝐶𝐴 !,! !"#$ 𝑦 + 𝐿𝐶𝐴 !,! !"#$% 𝑦 + 𝐿𝐶𝐴 !,! !"# 𝑦 + 𝐿𝐶𝐴 !,! !"# 𝑦 ×𝑅 (2)
𝐿𝐶𝐴 !,! !"#$ 𝑦 = 𝑛 !,! 𝑦 ! × 𝐶 ! 𝑦 ×𝐸 !,!,! 𝑦 ×𝑃𝐻 ! (3) 𝐿𝐶𝐴 !,! !"#$% 𝑦 = 𝐹 𝑦 ×𝐸 !"#$#% 𝑦 ×𝑃𝑇 ! ×𝐷 ! (4) 𝐿𝐶𝐴 !,! !"# 𝑦 = 𝑛 !,! 𝑦 ! × 𝐶 ! 𝑦 ×𝐸 !,!,! 𝑦 ×𝑃𝐻 ! ×𝑀 ! (5) 𝐿𝐶𝐴 !,! !"# 𝑦 = 𝑛 !,! 𝑦 ! × 𝐶 ! 𝑦 ×𝐸 !,
𝐿𝐶𝐴 !,! !"#$% -cost in transportation [€]; 𝐿𝐶𝐴 !,! !"# -cost in use phase [€]; 𝐿𝐶𝐴 !,! !"# -cost in End of Life phase [€]
Due to size limitation of this paper, the detailed description of methods and data used in LCA are described in details in [START_REF] Romejko | Life Cycle Analysis of Emissions from Electric and Gasoline Vehicles in Different Regions (to be published)[END_REF] paper. The changes and additional data gathered for the model are defined in the below sections. Furthermore, we are considering environmental leakage and therefore we use consumer-base approach [START_REF] Ghertner | Trading away damage: Quantifying environmental leakage through consumption-based, life-cycle analysis[END_REF], which assumes that consumers are bearing the full responsibility for the impacts of producing the goods they consume. Due to the above, we are taking into consideration the total emissions that were produced i.e. manufacturing and transportation and add them to the cost of the importing country.

Electricity mix, emissions, cost, vehicle assumptions, transport

The data for China, UK and Japan were taken from IEA for both the present situation and the future forecast [START_REF]Electricity Information 2016[END_REF]. IEA predicts scenario for Europe as a whole, which is an inaccurate scenario for Poland, since the electricity mix is based on coal. In view of this fact, we use the forecast conducted by the Polish government [24].

Emissions from electricity generated from coal for Poland were taken from IEA [START_REF]Emission standards: Poland[END_REF] The government implemented new emission standards for coal from 2016. The future emissions from electricity generated from coal were adjusted to the UK levels.

The emission cost for both electricity production and use phase of EVs were gathered in the previous study [START_REF] Romejko | Life Cycle Analysis of Emissions from Electric and Gasoline Vehicles in Different Regions (to be published)[END_REF]. Emission prices for maritime transportation were calculated as an average price of the available damage cost of pollutants in sea regions [START_REF] Korzhenevych | Update of the Handbook on External Costs of Transport[END_REF].

The basic assumptions correspond to the previous study published in [START_REF] Romejko | Life Cycle Analysis of Emissions from Electric and Gasoline Vehicles in Different Regions (to be published)[END_REF]. The EV under review is Nissan Leaf, with a 24kWh Lithium-Ion batter. For this case study, we assume no battery replacement in the 10year usage period, since the Nissan Leaf guarantees the battery for around 160,000 km [START_REF][END_REF]. Annual average vehicle mileage differs among the case study countries. For China it is 14,496 km [START_REF] Chen | China Motorization Trends[END_REF], for Japan 9,300 km [28], UK 12,713km [29] and 8,257 km in Poland [START_REF] Chlopek | Projections of the Fuel Consumption by the Road Transport in Poland[END_REF]. Since the data do not distinguish types of vehicles, we assume that the distance is same for all types of passenger vehicles.

Global transport of large quantities of new vehicles is primarily carried by ships. We calculate the emissions produced during transportation from the main port of dispatch to the main port of arrival. For Japan, the port of entry is Yokohama, for the UK is Bristol, for China is Shanghai and Gdańsk for Poland. The distance is calculated according to data from [START_REF]Shipping Quotation Platform[END_REF]. The assumption is, that the shipping takes place on Roll On Roll Off (RORO) base [START_REF] Belson | Around the World With 5,500 Cars[END_REF], which capacity is 7,200 EV vehicles [START_REF]Service Fleet of Toyofuji Corp[END_REF]. This type of vessel is used to due to the fact that most of the vehicle producers use this type of shipment in order to maximize capacity and minimize time. The g/kWh emissions of medium speed diesel vessel (MSD) were taken from [START_REF] Moreno-Gutiérrez | Methodologies for estimating shipping emissions and energy consumption: A comparative analysis of current methods[END_REF] and the energy cost in kWh/t-km of freight-transport was based on [START_REF] Mckay | Sustainable Energy -without the hot air[END_REF].

Results and discussion

The comparisons of results for the 16 cases of vehicle life cycle are presented in Fig. 2 and Fig. 3 below.

Fig. 1 Total health cost associated with EV life cycle (production in 2016)

The findings from Fig. 2 and Fig. 3 clearly present the fact that if we consider environmental leakage, import and export of EVs is not justified in some situations e.g. where emissions during manufacturing are high or the distance between the countries is substantial. According to the outcome of the research, the production and use of vehicles in the UK contribute to the lowest health cost among all 16 cases analyzed for both 2016 and 2025. Provided that, it would be advised to set the production of EVs in the UK due to the advantageous electricity mix and the proximity to other European markets. It is seen, from the Fig. 2, that for Poland, the apt solution would be to import the EVs from the UK in 2016. In this situation, the total health cost that Poland would have to bear stands at around €40M. In contrast, there was a 95% decrease in the case of the production and use of the EVs in Poland from 2016 to 2025. The slump of the total monetary cost can be explained by the fact that improvement in electricity production technologies and the change of the electricity mix in Poland takes place. Moreover, the driving distance in Poland is shorter than in the UK. In China, for both 2016 and 2025 scenario, the most appropriate solution would be to import the EVs from Japan due to the short distance and the lower emissions of pollutants in Japan. Surprisingly, in Japan in 2016, the lowest total health cost would take place in the scenario when EVs are imported from the UK. This has a reflection in the change of electricity mix in Japan after Tohoku Earthquake in 2011. Instead of nuclear energy, Japan is using a higher percentage of gas and coal for electricity generation. In 2025 in all cases, the total monetary cost of health diseases drops dramatically due to significant improvement in electricity production, technology efficiency of vehicle and battery production, and new standards for air pollution. The most substantial decrease in terms of value can be noted in the case of producing the EVs in Poland and exporting them to China. This case scenario is worth around €115M in 2016 and no more than €18.5M in 2025. Another interesting aspect that emerges from analyzing the data is that during the maritime transportation the emission of air pollutants is significant. The analysis showed that only the transportation of an EV from Japan to Poland in 2016 accounted for almost 20% of total lifecycle emissions of NO x 13% of SO 2 and 55% of PM. In terms of the import of an EV from Japan to the UK in 2016, those results were even higher and amounted to 30% of NO x , 43% of SO 2 and 76% of PM. The result from this study can be substantiated by the data from [START_REF] Vidal | Health risks of shipping pollution have been 'underestimated[END_REF], which shows that a ship can emit around 5,000 tons of SO 2 annually.

Fig. 2 Total health cost associated with EV life cycle (production in 2025)

The author of the previous-mentioned study asserts that one container ship can produce "almost the same amount of cancer and asthma-causing chemicals as 50M cars" [START_REF] Vidal | Health risks of shipping pollution have been 'underestimated[END_REF].

Conclusions

To sum up, the majority of human-made air pollution originates from energy use and production, combustion of biomass and fossil fuels [START_REF]Energy and Air Pollution[END_REF]. Health problems associated with the aftermaths of air pollution are causing a considerable monetary cost for the global economy. In this study, we believe that developed countries, producers and consumers and are to be blamed for the aftermaths of the environmental leakages. Developing countries imports dirty products and this lead to displacement of emissions abroad and often an overall increase in the global pollution [START_REF] Faehn | Richer and cleaner-At others' expense?[END_REF]. Hence, the present study was designed to determine the cost of health problems associated with air pollution, while incorporating environmental leakage. In this research, the rich countries carry the cost of locating production in developing countries and pay the abatement cost back to producing countries. The numerical results of this study prove our concern about environmental leakage and the danger of importing the products from developing countries. This study has found that it is advisable to keep local production if the country's electricity is generated from the clean energy source. Additionally, if the electricity mix is unfavorable, it is recommended to import from a nearby-located country of a clean electricity mix.

There is a strong need for further regulations and implementation of standards for not only vehicle transportation emission but also maritime transportation. It is also recommended to switch from using marine diesel to ships fueled by liquefied natural gas (LNG), this can considerably reduce not only SO 2 but also PM emissions. At stake is implementing regulations, global policy towards decreasing the air emission level, and unification of the alarming standards. Furthermore, it is also crucial to note that this paper has only analyzed the cost of the health from production, transport and use of EVs. If the cost of GHG emissions would be analyzed the final result would differ. Further improvements in the study could investigate a broader view and include total sustainability analysis of EVs' impact.

  !,! 𝑦 ×𝑃𝐻 ! e: emission type [NOx, SO2, PM] k: country investigated (Japan/ China/ UK/Poland) n: energy ratio (Japan/ China/ UK/Poland) y: year [2016-2025] m: type of energy used (coal, nuclear, gas, etc.) C: energy consumption [kWh] E: air emissions of NOx, SO2, PM from energy production[kg per kWh] M: mileage [km] R: production rate [units] F: energy used to transport one vehicle on a diesel MSD ship per km [kWh per km] 𝐸 !"#$#% : air emissions of NOx, SO2, PM from energy production in MSD ferry ship [kg per kWh] D: distance in ferry transportation [km] 𝑃𝐻 ! : Monetary damage conversion cost of high-height emissions (energy production) [€ per kg] 𝑃𝐿 ! : Monetary damage conversion cost of low-height emissions cost (transportation) [€ per kg] 𝑃𝑇 ! : Monetary damage conversion cost of diesel ship transportation emissions cost [€ per kg] 𝐿𝐶𝐴 !,!!"!#$ -stands for total cost [€]; 𝐿𝐶𝐴 !,! !"#$ -cost in manufacturing phase [€];