a review and evaluation of vehicle fuel efficiency labeling and consumer information schemes anup...
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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
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Outline
Background and motivation Project scope and methodology Review of VFEL Programs Six key elements of VFEL program Survey results Major findings Further discussion
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1 Background and motivation
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Vehicles make up more than 20% of greenhouse gas emissions …
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… and emission levels will increase without reduction efforts
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APEC economies account for ~40% of population, ~56% of GDP, and 66% of global vehicles sales
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Robust vehicle sales growth in APEC economies
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Integrated Vehicle Efficiency Policy PortfolioTo
day’
s pr
esen
tatio
npolicy measures to increase vehicle efficiency
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2 Project Scope and methodology
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Vehicle fuel efficiency labeling (VFEL) schemes encourage consumers to purchase more efficient vehicles
• 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 include
• Passenger cars, light trucks/light-commercial vehicle• All types of fuel (gasoline, diesel, LPG, CNG,
hydrogen, electricity)
VFEL schemes applicable to
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How well are the VFEL schemes working and what could be improved?
Desk-research on VFEL literature and regulations
• 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 non-profits
Stakeholder survey
Workshop discussion
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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
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Participants from 17 APEC economies and 6 non-APEC 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 √
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Survey Respondents’ affiliationsAustralia 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
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3 Review of VFEL Programs
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Six key elements for VFEL programs
Regulatory framework
Program design
Label information and design
Consumer outreach
Compliance and enforcement
Performance measurement
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Components under six key elements (1-3)
• Legislative/regulatory support• Other fuel efficiency related policies
Regulatory framework
• 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
Program design
• Understandable fuel efficiency/CO2 emissions information• Indication of running cost or financial penalties/reward• Comparable information for AFVs• Specialized information for advanced technologies
Label information and design
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Components under six key elements (4-6)
• User-friendly website provide VFEL information• Mandatory fuel efficiency information in promotion
materials through other media• Direct communication channel with consumers
Consumer outreach
• Audits of vehicle fuel efficiency/CO2 emissions test• Verification of the display and correctness of label
information and impose penalty for non-compliance
Compliance and enforcement
• Periodical VFEL effectiveness assessmentPerformance measurement
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Six key elements for VFEL programs
Regulatory framework
Program design
Label information and design
Consumer outreach
Compliance and enforcement
Performance measurement
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Year of implementation VFEL programs in APEC and select Non-APEC economies
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VFEL program objectives ranked by importance
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Implementation of fuel efficiency related policies by economy
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Importance of complementary fuel efficiency policies in enhancing VFEL program
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Economies using a combination of different policies are more likely have a larger CO2 emission reduction
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Six key elements for VFEL programs
Regulatory framework
Program design
Label information and design
Consumer outreach
Compliance and enforcement
Performance measurement
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VFEL program scope
• US, UK• Canada, Hong Kong China, New Zealand (AFVs), Brazil
• New Zealand
• Australia, Chile, China, Chinese Taipei, Japan, Korea, New Zealand, Singapore, US, Vietnam, Austria, Germany, the Netherlands, UK
Mandatory New
Mandatory Used
Voluntary Used
Voluntary New
Economies in red apply VFEL program to passenger cars only,Others apply to passenger cars and light truck/light-commercial vehicles
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Test cycles adopted by different economies for fuel efficiency/CO2 emission label information
Test Cycle Adopted By
NEDC/UN ECE 101 Australia, Chile, China, Chinese Taipei, Singapore, Viet Nam, Austria, Germany, Netherlands, UK
US 2-cycle Korea, Brazil
US 5-cycle USA, Canada
JC08 Japan
Japan 10-15 mode Hong Kong, China
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.
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Six key elements for VFEL programs
Regulatory framework
Program design
Label information and design
Consumer outreach
Compliance and enforcement
Performance measurement
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Frequency of usage of information on different labels in 17 VFEL programs
Fuel efficiency info.
CO2 emission info.
Others
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Important label information elements
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Different scales for showing fuel efficiency ratings
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2015 Toyota Camry Label Rating
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 5Class: 2400~3000 cc
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 M
2015 Toyota Camry 2.5 L 134 g/km (NEDC) 17.8 km/l (US 2-cycle) 28 mpg (US 5-cycle)
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Rating of the usefulness of label information for AFVs
Special considerations for AFVs
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
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Six key elements for VFEL programs
Regulatory framework
Program design
Label information and design
Consumer outreach
Compliance and enforcement
Performance measurement
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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
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Rating on marketing initiatives to VFEL scheme
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Six key elements for VFEL programs
Regulatory framework
Program design
Label information and design
Consumer outreach
Compliance and enforcement
Performance measurement
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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
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Six key elements for VFEL programs
Regulatory framework
Program design
Label information and design
Consumer outreach
Compliance and enforcement
Performance measurement
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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
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Effectiveness Measurement
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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)
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Which indicators would you use to assess the effectiveness of a VFEL program?
Other Participation of vehicle manufacturers, importers and sales agents (in voluntary program) Advertising for marketing and sales, TV and radio announcements (in voluntary program) Counts of media stories mentioning fueleconomy.gov (in the US)
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Initiatives improving VFEL program effectiveness
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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
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Preliminary Assessment of APEC VFEL Programs
Participant feedback and scrutiny needed to before finalization
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4 Draft Best Practices
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Best practices for VFEL Programs <DRAFT>
• Legislation and labeling specific regulation to empower agencies to establish and enforce the scheme
• Implement complementary policies: FE standards, fiscal incentives etc.
Regulatory framework
• Mandatory rather than voluntary• All fuel types covered• Include new as well as used vehicles• Conduct comprehensive market research
Program 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
Label information and design
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Best practices for VFEL Programs <DRAFT>
• Maximize the features of VFEL website• Make label information available through other media,
especially the internet• Open two-way communication channel with consumers
Consumer outreach
• Carry out confirmatory tests• Conduct periodic verification of the display of label
information• Impose penalty for noncompliance
Compliance and enforcement
• Conduct regular program assessments• Track compliance level of the VFEL schemes• Survey impact of efficiency and labels on consumer
behavior
Performance measurement
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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