IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v37y2009i11p4720-4729.html
   My bibliography  Save this article

China's fuel economy standards for passenger vehicles: Rationale, policy process, and impacts

Author

Listed:
  • Oliver, Hongyan H.
  • Gallagher, Kelly Sims
  • Tian, Donglian
  • Zhang, Jinhua

Abstract

China issued its first Fuel Economy Standards (FES) for light-duty passenger vehicles (LDPV) in September 2004, and the first and second phases of the FES took effective in July 2005 and January 2008, respectively. The stringency of the Chinese FES ranks third globally, following the Japanese and European standards. In this paper, we first review the policy-making background, including the motivations, key players, and the process; and then explain the content and the features of the FES and why there was no compliance flexibility built into it. Next, we assess the various aspects of the standard's impact, including fuel economy improvement, technology changes, shift of market composition, and overall fuel savings. Lastly, we comment on the prospect of tightening the existing FES and summarize the complementary policies that have been adopted or may be considered by the Chinese government for further promoting efficient vehicles and reducing transport energy consumption. The Chinese experience is highly relevant for countries that are also experiencing or anticipating rapid growth in personal vehicles, those wishing to moderate an increase in oil demand, or those desirous of vehicle technology upgrades.

Suggested Citation

  • Oliver, Hongyan H. & Gallagher, Kelly Sims & Tian, Donglian & Zhang, Jinhua, 2009. "China's fuel economy standards for passenger vehicles: Rationale, policy process, and impacts," Energy Policy, Elsevier, vol. 37(11), pages 4720-4729, November.
    • Handle: RePEc:eee:enepol:v:37:y:2009:i:11:p:4720-4729
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301-4215(09)00442-X
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kenneth A. Small & Kurt Van Dender, 2007. "Fuel Efficiency and Motor Vehicle Travel: The Declining Rebound Effect," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 25-52.
    2. Yan, Xiaoyu & Crookes, Roy J., 2009. "Reduction potentials of energy demand and GHG emissions in China's road transport sector," Energy Policy, Elsevier, vol. 37(2), pages 658-668, February.
    3. A. Greening, Lorna & Greene, David L. & Difiglio, Carmen, 2000. "Energy efficiency and consumption -- the rebound effect -- a survey," Energy Policy, Elsevier, vol. 28(6-7), pages 389-401, June.
    4. He, Kebin & Huo, Hong & Zhang, Qiang & He, Dongquan & An, Feng & Wang, Michael & Walsh, Michael P., 2005. "Oil consumption and CO2 emissions in China's road transport: current status, future trends, and policy implications," Energy Policy, Elsevier, vol. 33(12), pages 1499-1507, August.
    5. Fischer, Carolyn, 2008. "Comparing flexibility mechanisms for fuel economy standards," Energy Policy, Elsevier, vol. 36(8), pages 3106-3114, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chen, Zhenni & Du, Huibin & Li, Jianglong & Southworth, Frank & Ma, Shoufeng, 2019. "Achieving low-carbon urban passenger transport in China: Insights from the heterogeneous rebound effect," Energy Economics, Elsevier, vol. 81(C), pages 1029-1041.
    2. Zhang, Lei & Qin, Quande, 2018. "China’s new energy vehicle policies: Evolution, comparison and recommendation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 110(C), pages 57-72.
    3. Zhang, Xingping & Liang, Yanni & Yu, Enhai & Rao, Rao & Xie, Jian, 2017. "Review of electric vehicle policies in China: Content summary and effect analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 698-714.
    4. Bastin, Cristina & Szklo, Alexandre & Rosa, Luiz Pinguelli, 2010. "Diffusion of new automotive technologies for improving energy efficiency in Brazil's light vehicle fleet," Energy Policy, Elsevier, vol. 38(7), pages 3586-3597, July.
    5. Hao, Han & Liu, Zongwei & Zhao, Fuquan & Li, Weiqi & Hang, Wen, 2015. "Scenario analysis of energy consumption and greenhouse gas emissions from China's passenger vehicles," Energy, Elsevier, vol. 91(C), pages 151-159.
    6. Silitonga, A.S. & Atabani, A.E. & Mahlia, T.M.I., 2012. "Review on fuel economy standard and label for vehicle in selected ASEAN countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(3), pages 1683-1695.
    7. Ben Dror, Maya & Qin, Lanzhi & An, Feng, 2019. "The gap between certified and real-world passenger vehicle fuel consumption in China measured using a mobile phone application data," Energy Policy, Elsevier, vol. 128(C), pages 8-16.
    8. Valenzuela, Jose Maria & Qi, Ye, 2012. "Framing energy efficiency and renewable energy policies: An international comparison between Mexico and China," Energy Policy, Elsevier, vol. 51(C), pages 128-137.
    9. Xingping Zhang & Rao Rao & Jian Xie & Yanni Liang, 2014. "The Current Dilemma and Future Path of China’s Electric Vehicles," Sustainability, MDPI, vol. 6(3), pages 1-27, March.
    10. Lo, Kevin, 2014. "A critical review of China's rapidly developing renewable energy and energy efficiency policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 508-516.
    11. Augustus De Melo, Conrado & De Martino Jannuzzi, Gilberto & De Mello Santana, Paulo Henrique, 2018. "Why should Brazil to implement mandatory fuel economy standards for the light vehicle fleet?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 1166-1174.
    12. Huo, Hong & Yao, Zhiliang & He, Kebin & Yu, Xin, 2011. "Fuel consumption rates of passenger cars in China: Labels versus real-world," Energy Policy, Elsevier, vol. 39(11), pages 7130-7135.
    13. Yao, Mingfa & Liu, Haifeng & Feng, Xuan, 2011. "The development of low-carbon vehicles in China," Energy Policy, Elsevier, vol. 39(9), pages 5457-5464, September.
    14. Howell, Sabrina T., 2018. "Joint ventures and technology adoption: A Chinese industrial policy that backfired," Research Policy, Elsevier, vol. 47(8), pages 1448-1462.
    15. Mahlia, T.M.I. & Tohno, S. & Tezuka, T., 2012. "History and current status of the motor vehicle energy labeling and its implementation possibilities in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(4), pages 1828-1844.
    16. Atabani, A.E. & Badruddin, Irfan Anjum & Mekhilef, S. & Silitonga, A.S., 2011. "A review on global fuel economy standards, labels and technologies in the transportation sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4586-4610.
    17. Ko, Ahyun & Myung, Cha-Lee & Park, Simsoo & Kwon, Sangil, 2014. "Scenario-based CO2 emissions reduction potential and energy use in Republic of Korea’s passenger vehicle fleet," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 346-356.
    18. Karplus, V. & Kishimoto, P. & Paltsev, S., 2012. "The global energy, CO2 emissions, and economic impact of vehicle fuel economy standards," Conference papers 332263, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    19. Zhang, Chuanguo & Nian, Jiang, 2013. "Panel estimation for transport sector CO2 emissions and its affecting factors: A regional analysis in China," Energy Policy, Elsevier, vol. 63(C), pages 918-926.
    20. Fuchs, Erica R.H. & Field, Frank R. & Roth, Richard & Kirchain, Randolph E., 2011. "Plastic cars in China? The significance of production location over markets for technology competitiveness in the United States versus the People's Republic of China," International Journal of Production Economics, Elsevier, vol. 132(1), pages 79-92, July.
    21. Duc Luong, Nguyen, 2015. "A critical review on Energy Efficiency and Conservation policies and programs in Vietnam," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 623-634.
    22. Li, Yi & Wang, Zhaohua & Wang, Ke & Zhang, Bin, 2021. "Fuel economy of Chinese light-duty car manufacturers: An efficiency analysis perspective," Energy, Elsevier, vol. 220(C).
    23. Huo, Hong & He, Kebin & Wang, Michael & Yao, Zhiliang, 2012. "Vehicle technologies, fuel-economy policies, and fuel-consumption rates of Chinese vehicles," Energy Policy, Elsevier, vol. 43(C), pages 30-36.
    24. Wu, Jingwen & Posen, I. Daniel & MacLean, Heather L., 2021. "Trade-offs between vehicle fuel economy and performance: Evidence from heterogeneous firms in China," Energy Policy, Elsevier, vol. 156(C).
    25. Sheinbaum-Pardo, Claudia & Chávez-Baeza, Carlos, 2011. "Fuel economy of new passenger cars in Mexico: Trends from 1988 to 2008 and prospects," Energy Policy, Elsevier, vol. 39(12), pages 8153-8162.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. González, Rosa Marina & Marrero, Gustavo A. & Rodríguez-López, Jesús & Marrero, Ángel S., 2019. "Analyzing CO2 emissions from passenger cars in Europe: A dynamic panel data approach," Energy Policy, Elsevier, vol. 129(C), pages 1271-1281.
    2. Wang, H. & Zhou, P. & Zhou, D.Q., 2012. "An empirical study of direct rebound effect for passenger transport in urban China," Energy Economics, Elsevier, vol. 34(2), pages 452-460.
    3. Liu, Wen & Lund, Henrik & Mathiesen, Brian Vad, 2013. "Modelling the transport system in China and evaluating the current strategies towards the sustainable transport development," Energy Policy, Elsevier, vol. 58(C), pages 347-357.
    4. Shigemi Kagawa & Yuriko Goto & Sangwon Suh & Keisuke Nansai & Yuki Kudoh, 2012. "Accounting for Changes in Automobile Gasoline Consumption in Japan: 2000–2007," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 1(1), pages 1-27, December.
    5. Jianlei Lang & Shuiyuan Cheng & Ying Zhou & Beibei Zhao & Haiyan Wang & Shujing Zhang, 2013. "Energy and Environmental Implications of Hybrid and Electric Vehicles in China," Energies, MDPI, vol. 6(5), pages 1-23, May.
    6. De Borger, Bruno & Mulalic, Ismir & Rouwendal, Jan, 2016. "Measuring the rebound effect with micro data: A first difference approach," Journal of Environmental Economics and Management, Elsevier, vol. 79(C), pages 1-17.
    7. Yoo, Sunbin & Koh, Kyung Woong & Yoshida, Yoshikuni & Wakamori, Naoki, 2019. "Revisiting Jevons's paradox of energy rebound: Policy implications and empirical evidence in consumer-oriented financial incentives from the Japanese automobile market, 2006–2016," Energy Policy, Elsevier, vol. 133(C).
    8. Karen Turner, 2013. ""Rebound" Effects from Increased Energy Efficiency: A Time to Pause and Reflect," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    9. Timilsina, Govinda R. & Dulal, Hari B., 2009. "A review of regulatory instruments to control environmental externalities from the transport sector," Policy Research Working Paper Series 4867, The World Bank.
    10. Zolnik, Edmund J., 2012. "Estimates of statewide and nationwide carbon dioxide emission reductions and their costs from Cash for Clunkers," Journal of Transport Geography, Elsevier, vol. 24(C), pages 271-281.
    11. Wang, Jiayu, 2016. "Do light vehicle emissions standards promote environmental goals in Australia?," Conference papers 332692, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Yu, Wei & Pagani, Roberto & Huang, Lei, 2012. "CO2 emission inventories for Chinese cities in highly urbanized areas compared with European cities," Energy Policy, Elsevier, vol. 47(C), pages 298-308.
    13. Orea, Luis & Llorca, Manuel & Filippini, Massimo, 2015. "A new approach to measuring the rebound effect associated to energy efficiency improvements: An application to the US residential energy demand," Energy Economics, Elsevier, vol. 49(C), pages 599-609.
    14. Xu, Yang-Jie & Li, Guo-Xiu & Sun, Zuo-Yu, 2016. "Development of biodiesel industry in China: Upon the terms of production and consumption," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 318-330.
    15. Zhang, Yong & Yu, Yifeng & Zou, Bai, 2011. "Analyzing public awareness and acceptance of alternative fuel vehicles in China: The case of EV," Energy Policy, Elsevier, vol. 39(11), pages 7015-7024.
    16. Kenneth Gillingham & David Rapson & Gernot Wagner, 2016. "The Rebound Effect and Energy Efficiency Policy," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 10(1), pages 68-88.
    17. Aydın, Erdal & Brounen, Dirk & Ergün, Ahmet, 2023. "The rebound effect of solar panel adoption: Evidence from Dutch households," Energy Economics, Elsevier, vol. 120(C).
    18. Adamos Adamou & Sofronis Clerides & Theodoros Zachariadis, 2012. "Assessment of CO2-Oriented Vehicle Tax Reforms: A Case Study of Greece," University of Cyprus Working Papers in Economics 04-2012, University of Cyprus Department of Economics.
    19. Peng, Tianduo & Ou, Xunmin & Yuan, Zhiyi & Yan, Xiaoyu & Zhang, Xiliang, 2018. "Development and application of China provincial road transport energy demand and GHG emissions analysis model," Applied Energy, Elsevier, vol. 222(C), pages 313-328.
    20. Jeroen Bergh, 2011. "Energy Conservation More Effective With Rebound Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(1), pages 43-58, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:37:y:2009:i:11:p:4720-4729. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.