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

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  • 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
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. repec:eee:transa:v:110:y:2018:i:c:p:57-72 is not listed on IDEAS
    9. 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.
    10. 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.
    11. 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.
    12. repec:eee:rensus:v:81:y:2018:i:p1:p:1166-1174 is not listed on IDEAS
    13. 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.
    14. 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.
    15. 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.
    16. 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.
    17. 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.
    18. 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.

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