A Review and Evaluation of
Vehicle Fuel Efficiency
Labeling and Consumer
Information Schemes
Anup Bandivadekar
Zifei Yang
March 24, 2015
APEC VFEL workshop
Singapore
ICCT mission and activities


The mission of ICCT is to
dramatically improve the

environmental performance and
efficiency of cars, trucks, buses
and transportation systems in

order to protect and improve
public health, the environment,
and quality of life.

Non-profit research
organization
Air Pollution and Climate
Impacts
Focus on regulatory
policies and fiscal
incentives
Activity across modes
including aviation and
marine
Global outreach, with
special focus on largest
markets
Slide 2
Outline







Background and motivation
Project scope and methodology
Review of VFEL Programs
Six key elements of VFEL program
Survey results
Major findings
Further discussion
3
1
Background and
motivation
4
Vehicles make up more than 20% of
greenhouse gas emissions …
5
… and emission levels will increase
without reduction efforts
6
APEC economies account for ~40% of population,
~56% of GDP, and 66% of global vehicles sales
70%
65.9%
63.9%
65%
Vehicle Sales
60.4%
APEC Share of the World
60%
58.7%
55.6%
58.1%
57.6%
57.0%
55%
57.4%
57.3%
55.3%
55.1%
60.6%
56.0%
55.3%
54.4%
53.3%
52.7%
GDP
50%
45%
40.9%
40.7%
40.5%
40.3%
40.1%
39.9%
39.7%
39.6%
40%
39.0%
Population
35%
7
30%
2005
2006
2007
2008
2009
2010
2011
2012
2013
Robust vehicle sales growth in APEC economies
8
policy measures to increase vehicle efficiency
Today’s presentation
Integrated Vehicle Efficiency Policy Portfolio
VEHICLE FUEL EFFICIENCY
STANDARDS
•
FISCAL MEASURES
•
•
•
Introduce and regularly strengthen mandatory
standards
Establish and harmonize testing procedures
for fuel efficiency measurement.
Fuel taxes and vehicle taxes to encourage the
purchase of more fuel-efficient vehicles.
Infrastructure support and incentive schemes
for very fuel-efficient vehicles.
MARKET-BASED APPROACHES
•
Voluntary programs such as U.S. SmartWay
and other green freight programs
INFORMATION MEASURES
•
•
Vehicle fuel economy labels
Improving vehicle operational efficiency
through eco-driving and other measures.
9
2
Project Scope and
methodology
10
Vehicle fuel efficiency labeling (VFEL) schemes encourage
consumers to purchase more efficient vehicles
VFEL schemes include
• The “fuel efficiency label” referring information that is
displayed about the car in the showroom, online or
through other media
• Associated consumer information campaign
• Monitoring uptake of the scheme by industry
• Monitoring consideration of fuel economy by
customers
VFEL schemes applicable to
• Passenger cars, light trucks/light-commercial vehicle
• All types of fuel (gasoline, diesel, LPG, CNG,
hydrogen, electricity)
11
How well are the VFEL schemes working
and what could be improved?
Desk-research on VFEL literature and regulations
Stakeholder survey
• Identified experts in APEC and non-APEC economies
working on vehicle fuel efficiency labeling field
• Respondents come from government, research
institution, auto clubs, consumer association, other nonprofits
Workshop discussion
12
Survey overview
Conducted online via Sogosurvey
from 21st December 2014 to 28th
Feb 2015
34 complete responses
17 APEC economies +
5 non-APEC economies + EU
13
Participants from 17 APEC economies and 6 nonAPEC Economies responded to the survey
APEC economies
with VFEL
Survey
APEC economies
without VFEL
Survey
APEC economies
with VFEL
Survey
Australia
√
Brunei Darussalam
Austria
√
Canada
√
Indonesia
Brazil
√
Chile
√
Malaysia
√
Germany
√
China
√
Mexico
√
The Netherlands
√
Hong Kong, China
√
Papua New Guinea
The United Kingdom
√
Japan
√
Peru
The European Union
√
Republic of Korea
√
The Philippines
√
New Zealand
√
Russia
√
Singapore
√
Thailand
√
US
√
Viet Nam
√
Chinese Taipei
√
14
Survey Respondents’ affiliations
Australia
Department of Infrastructure and Regional Development
Canada
Natural Resources Canada
China
China Automotive Technology and Research Center
Chile
Vehicle Control Center and Certification; Ministry of Energy
Korea
Korea Energy Management Corporation
Malaysia
Malaysia automotive institute, Universiti Tenaga Nasional
Mexico
National Commission for the Efficient Use of Energy
New Zealand
Energy Efficiency and Conservation Authority
Russia
Ministry of Transport (NIIAT)
Singapore
Land Transport Authority
Thailand
Department of Alternative Energy Development and Efficiency, Asia Pacific Energy Research
Center
The Philippines
Clean Air Asia
US
Environmental Protection Agency; Department of Energy; Oak Ridge National Laboratory
Vietnam
Vietnam Register- Ministry of Transport
EU
EU commission, EU Consumer Organization (BEUC)
Austria
Austria Tech
Brazil
National Institute of Metrology, Standardization, and Industrial Quality (INMETRO), Greenpeace
Brazil, Instituto de Energia e Meio Ambiente
Germany
Consumer Federation (VZBV)
UK
Department for Transport, Low Carbon Vehicle Partnership
The Netherlands
Netherlands Ministry for infrastructure and Environment
15
3
Review of VFEL
Programs
16
Six key elements for VFEL programs
Regulatory framework
Program design
Label information and design
Consumer outreach
Compliance and enforcement
Performance measurement
17
Components under six key elements (1-3)
Regulatory
framework
Program
design
Label
information
and design
• Legislative/regulatory support
• Other fuel efficiency related policies
•
•
•
•
Mandatory VFEL requirement
Broad coverage of the VFEL scheme
Public participation in program design
Accurate fuel efficiency/CO2 emissions data that reflect
vehicle real-world performance
•
•
•
•
Understandable fuel efficiency/CO2 emissions information
Indication of running cost or financial penalties/reward
Comparable information for AFVs
Specialized information for advanced technologies
18
Components under six key elements (4-6)
Consumer
outreach
• User-friendly website provide VFEL information
• Mandatory fuel efficiency information in promotion
materials through other media
• Direct communication channel with consumers
Compliance
and
enforcement
• Audits of vehicle fuel efficiency/CO2 emissions test
• Verification of the display and correctness of label
information and impose penalty for non-compliance
Performance
measurement
• Periodical VFEL effectiveness assessment
19
Six key elements for VFEL programs
Regulatory framework
20
Year of implementation VFEL programs in
APEC and select Non-APEC economies
Non-APEC
APEC
Voluntary
Mandatory
Viet Nam
Chile
Singapore
Chinese Taipei
China
Brazil
New Zealand
Germany
Hong Kong, China
Netherlands
Austria
EU
Australia
Japan
Canada
Korea
UK
USA
1975
21
1980
1985
1990
1995
2000
2005
2010
2015
VFEL program objectives ranked by importance
Rating (10-most imporntat)
Rate 1-5
Rate 6-10
100%
75%
50%
25%
0%
Improve fleet
fuel economy
Average
rating
8.6
Improve
consumer
information
disclosure
Reduce GHG/
CO2 emissions
from vehicles
Reduce
Improve
Push the market
petroleum
recognition of
take-up of
consumption
clean vehicles alternative fuel
and improve
vehicles
energy security
6.2
22
7
VFEL program
Vehicle efficiency/CO2 standards
High fossil fuel tax
Efficient vehicles fiscal incentives
6
Mandatory AFV sale targets
Subsidies for alterative fuel cost
AFVs fiscal incentives
5
4
3
2
1
U
S
B
H
on G raz
g erm il*
Ko a
ng ny
C *
Au hina
st
ra
N Ca lia
ew n
Ze ada
Si ala
ng nd
ap
Vi ore
et
na
m
C
Th hile
ai
l
R and
us
M sia
al n
ay
s
M ia
In exic
do o
ne
si
a
N
Ja
p
Au an
et st
he ria
r la *
nd
s*
U
K
So C *
ut hin
h
Ko a
re
a
0
Th
e
Number of efficiency related policies
Implementation of fuel efficiency related
policies by economy
* Non-APEC economy
23
Importance of complementary fuel efficiency
policies in enhancing VFEL program
Rating (10-most imporntat)
Rate 1-5
Rate 6-10
100%
75%
50%
25%
0%
Efficiency/CO2
Efficient
standards
vehicles fiscal
incentives
Average
8.6
rating
AFVs fiscal High fossil fuel Subsidies for
Mandatory
incentives
tax
alterative fuel target of AFVs
cost
sales
6.3
24
Economies using a combination of different policies are
more likely have a larger CO2 emission reduction
1.2
Economy (Number
of efficiency
related policies)
CO2 emission normalized to 2005 level
1.1
Mexico (1)
1
Chile (2)
Russia (2)
China (4)
Malaysia (1)
New Zealand (2)
Canada (2)
Indonesia (1)
0.9
United States (4)
0.8
Australia (2)
Thailand (2)
Japan (7)
South Korea (4)
0.7
Dashed line - no vehicle labeling proram
Solid line - have vehicle labeling program
0.6
2005
2006
2007
2008
2009
2010
2011
2012
2013
25
Six key elements for VFEL programs
Program design
26
VFEL program scope
• Australia, Chile, China,
Chinese Taipei, Japan,
Korea, New Zealand,
Singapore, US,
Vietnam, Austria,
Germany, the
Netherlands, UK
• Canada, Hong
Kong China, New
Zealand (AFVs),
Brazil
• New
Zealand
Mandatory
New
Mandatory
Used
Voluntary
New
Voluntary
Used
• US, UK
27
Economies in red apply VFEL program to passenger cars only,
Others apply to passenger cars and light truck/light-commercial vehicles
Test cycles adopted by different economies for
fuel efficiency/CO2 emission label information
Test Cycle
Adopted By
NEDC/UN ECE 101
US 2-cycle
Australia,
Chile,
Singapore, Viet
Netherlands, UK
Korea, Brazil
US 5-cycle
USA, Canada
JC08
Japan
Japan 10-15 mode
Hong Kong, China
China,
Chinese
Taipei,
Nam, Austria, Germany,
Note: New Zealand accepts vehicles built to standards in US, EU, Japan and Australia.
With adoption of WLTP, a greater harmonization is likely to take place.
28
Six key elements for VFEL programs
Label information and design
29
Frequency of usage of information on
different labels in 17 VFEL programs
Fuel type
16
Website
11
Fuel consumption (combined)
9
CO2 emission
8
Fuel consumption (seperated)
7
Fuel economy (combined)
7
Fuel cost
5
Fuel economy (seperated)
5
CO2 emission rating
Fuel efficiency info.
4
QR code
3
Fiscal incentive/charge/tax
3
Fuel economy class rating
3
Fuel economy rating
3
Fuel economy range
CO2 emission info.
Others
2
Fuel economy class range
1
Emission standard
1
Emission rating
1
CO2 emission range
1
Annual fuel consumption
1
Fuel cost saving/spending
1
0
Label information
in 17 economies
30
5
10
15
20
Important label information elements
31
Different scales for showing fuel efficiency ratings
32
2015 Toyota Camry Label Rating




2015 Toyota Camry 2.5 L
134 g/km (NEDC)
17.8 km/l (US 2-cycle)
28 mpg (US 5-cycle)
Economies
Rating range
Toyota Camry Rating
Canada
CO2 (1-10)
1 2 3 4 5 6 7 8 9 10 (best)
Chinese
Taipei
Efficiency relative class rating (1-6) (best) 1 2 3 4 5
Korea
Fuel efficiency (1-5)
(best) 1 2 3 4 5
US
CO2/efficiency (1-10)
1 2 3 4 5 6 7 8 9 10 (best)
Brazil
Fuel efficiency relative class rating
(A to E)
(best) A B C D E (relative class)
(best) A B C D E (absolute)
Germany
CO2 relative class rating (A+ to G)
(best) A+ A B C D E F G
UK
CO2 (A to M)
(best) A B C D E F G H I J K L 33
M
Class: 2400~3000 cc
Rating of the usefulness of label
information for AFVs
% of responses rating 6-10
(10-most imporntant)
Label design
94.4%
Fuel type
78.9%
Annual or distance based fuel
costs
CNG/LPG/ethanol/hydrogen
consumption
81.3%

81.3%
Driving range
80.0%
Gasoline equivalent fuel economy
78.6%
Electricity consumption
68.8%
Fiscal incentive
63.6%
CO2 emission rating
64.7%
Refueling time/charging time
42.9%
Other running cost (e.g. battery
pack replacement cost)
41.7%
0%
Special considerations for
AFVs
25%
50%

Fuel
efficiency/consumption
equivalent (MPGe?)
CO2 emissions
 Inclusion of upstream
emissions?


Refueling cost
Financial information
 Added incentives for AFVs

Others
 Electricity consumption, range,
charge time, operation
information of AFVs
75%
100%
34
Six key elements for VFEL programs
Consumer outreach
35
Elements of a VFEL website








Fuel efficiency/VFEL program introduction;
Explanation of label elements;
Fuel Efficiency information by make, model, type;
Comparison among different models;
Fuel cost calculation;
Fiscal incentive information;
Real world fuel consumption report
Eco-driving suggestions
36
37
Rating on marketing initiatives to VFEL scheme
Rating (10-most imporntat)
Rate 1-5
Rate 6-10
100%
75%
50%
25%
0%
VFEL websites/ Websites for
Mandate
Advertise VFEL
Public
pages
mobile device information in
program in
engagement
users
promotional
public media during label
materials
(video, radio)
design
Average
8.0
rating
Voluntary
Make and Advertise VFEL Dealer training
information in distribute VFELprogram in print
program
promotional
user guide (poster, flyers)
materials
5.8
38
Six key elements for VFEL programs
Compliance and enforcement
39
Compliance and Enforcement of VFEL
 Ensuring that the reported fuel
efficiency data complies with the
standard test procedures
 Ensuring that accurate information is
provided to the consumers in a
conscientious manner
40
Six key elements for VFEL programs
Performance measurement
41
Measuring overall effectiveness of VFEL programs
• Measuring the level of compliance; identifying means to
enhance compliance
• Understanding the consumer awareness and influence of
the program in the real world.
• Does the VFEL program alter the consumers purchasing
behavior?
• Learning lessons from the success and challenges of
existing program
• Identifying potential changes that will help the improve
VFEL program overall
42
Effectiveness Measurement
43
How has the assessment been conducted?

Other




Mystery shopper
Studies of grade consumption evolution
Studies identify fuel saving attributed to VFEL and assess efficiency improvement
driven by consumers and government requirement
Interview with national and European level stakeholders (in the EU)
44
Which indicators would you use to assess
the effectiveness of a VFEL program?
The influence of fuel economy is in
the purchase consideration set
Consumer awareness of the VFEL
Change of sales of fuel-efficient
vehicle sales
Amount of fuel saving from VFEL
Consumer question/complaint to
VFEL
Visitors to the VFEL websites
Download of VFEL guidance
Other (please specify)
0%

25%
50%
75%
100%
Other



Participation of vehicle manufacturers, importers and sales agents (in voluntary program)
Advertising for marketing and sales, TV and radio announcements (in voluntary program)45
Counts of media stories mentioning fueleconomy.gov (in the US)
Initiatives improving VFEL program effectiveness
Rating (10-most imporntat)
Rate 1-5
Rate 6-10
100%
75%
50%
25%
0%
Link VFEL to
Understand
Promote VFEL Regularly assess Engagement of
fiscal incentives market/consumer program to
the VFEL
stakeholders
behavior
increase public effectiveness
awareness
Average
rating 7.9
Require or
encourage
information
disclosure on
promotional
materials
Investigate the
types of media
for program
promotion
7
46
Barriers in effectiveness assessment
• Difficult to distinguish the effect of fuel
economy labeling from other factors that
might influence consumers and the market
• Difficulty in setting up a control group
• Changes in consumer preferences
47
Preliminary Assessment of APEC VFEL
Programs
Participant feedback and scrutiny needed to before finalization
48
4
Draft Best Practices
49
Best practices for VFEL Programs <DRAFT>
Regulatory
framework
• Legislation and labeling specific regulation to empower
agencies to establish and enforce the scheme
• Implement complementary policies: FE standards, fiscal
incentives etc.
Program
design
•
•
•
•
Label
information
and design
• Show running cost and financial penalties/reward
• Present comparable information for AFVs: efficiency/CO2
data, refueling cost, financial information
• ? Absolute value/absolute class rating/relative class rating
• ? Metrics
Mandatory rather than voluntary
All fuel types covered
Include new as well as used vehicles
Conduct comprehensive market research
50
Best practices for VFEL Programs <DRAFT>
Consumer
outreach
• Maximize the features of VFEL website
• Make label information available through other media,
especially the internet
• Open two-way communication channel with consumers
Compliance
and
enforcement
• Carry out confirmatory tests
• Conduct periodic verification of the display of label
information
• Impose penalty for noncompliance
Performance
measurement
• Conduct regular program assessments
• Track compliance level of the VFEL schemes
• Survey impact of efficiency and labels on consumer
behavior
51
Next Steps
 Comments on interim report due April 17th, 2015
 Workshop summary: May 11, 2015
 Address any identified gaps in the analysis, from
the workshop: May 18, 2015
 Draft final project report, a draft best practice
guide, and a draft recommendations action plan to
APEC: August 10, 2015
 Maintain network with practitioners
 Final project documents by October 13th, 2015
52