Effective implementation of fuel-economy labelling for passenger cars: experiences from the USA, Sweden and Republic of Korea

Ralph WAHNSCHAFFT, United Nations Economic and Social Commission for Asia and the Pacific (UN-ESCAP)
Kwisun HUH, Hankuk University of Foreign Studies

Abstract

Recognising the need to curb the growing fuel consumption in the transport sector, the Council of the European Union adopted on 21 December 1998 a legislative proposal requiring all of its member states to introduce fuel economy labels for passenger cars by the year 2000. Whilst the EU Council Directive provides for a standardised EU-wide policy framework, member states are allowed flexibility in their national approaches towards label design and programme implementation.

Against the background of the on-going discussion on national fuel labelling initiatives, this paper examines the experiences of the United States of America, Sweden and the Republic of Korea, where mandatory fuel efficiency information programmes for passenger cars have existed since 1975, 1978 and 1992 respectively. The paper compares the main features of these programmes. Based on findings of consumer research the authors analyse and discuss the presumed impacts of fuel efficiency information on consumer preferences and ultimate car choice or buying decisions.

Fuel economy comparison labels can be an important tool in raising environmental awareness. Label programmes that accompany fuel efficiency standards can have a greater impact. Car labelling programmes can only be expected to be effective if information provided is easily comprehensible and user friendly. Car labelling schemes need to be supported by accompanying public and consumer information programmes.