A Review and Evaluation of Vehicle Fuel Efficiency Labeling and Consumer Information Programs

APEC member economies account for approximately 57% of global GDP and 76% of global vehicles sales. The expansion of vehicle populations is pressuring governments around the world to improve vehicle efficiency and reduce greenhouse gas (GHG) emissions. Due to the fast development of technologies, similar vehicles can be significantly different in fuel efficiency. In addition to the free competition in the market, policymakers can lead the vehicle market to a more efficient fleet through appropriate regulations.
Vehicle fuel efficiency standards and labeling are complementary policy strategies to reduce on-road vehicle energy consumption and GHG emissions in APEC member economies. Tightening of fuel efficiency standards in major vehicle markets drives penetration of technologies that reduce vehicle fuel consumption and provide a supply-push of more efficient vehicles. The aim of VFEL is to provide vehicle fuel efficiency information to consumers in a manner that increases demand for more fuel-efficient vehicles and creates a strong demand-pull.
Even though VFEL is implemented in many parts of the world, there is very limited information on how well these programs are working and how they could be improved. Few analyses have attempted comprehensive reviews of implementation, compliance, and effectiveness of VFEL across APEC as well as non-APEC economies. In order to fill this research gap, APEC in conjunction with the New Zealand Energy Efficiency and Conservation Authority (EECA), has commissioned the International Council on Clean Transportation (ICCT) to conduct a detailed review of VFEL programs in APEC and non-APEC economies.
The aim is to evaluate these programs and enable economies to improve or set up their own programs based on best practices. An improved understanding of programs in place and under development will provide a framework to analyze and summarize considerations and best practices for practitioners in APEC member economies to develop or improve VFEL policies. Additionally it will facilitate alignment of VFEL policies across markets, which in turn will aid regional trade of fuel-efficient vehicles. As APEC member economies introduce or revise their VFEL programs according to best practices, consumers will be empowered to make informed decisions and influenced to purchase more efficient vehicles, thereby increasing demand for more efficient vehicles, leading to fuel savings and therefore reducing CO2 emissions from burning fossil fuels.
Compared to most studies that investigate and discuss different aspects of VFEL or studies that delve deeply into VFEL of one economy, this report is the most 16 comprehensive latest study on VFEL program development worldwide. It goes beyond providing profiles of 18 VFEL programs and conducts a comparison across programs to come up with best practices that policymakers and practitioners can use for policy development and revision. It also covers a wide variety of light-duty vehicles, including examples of alternative fuel vehicles such as battery electric vehicles and plug-in hybrid electric vehicles, and lays out the scope for improvement on that front.