Do technical improvements lead to real efficiency gains? Disaggregating changes in transport energy intensity

Matteo Craglia and Jonathan Cullen

Energy Policy, 2019, vol. 134, issue C

Abstract: Fuel economy standards are a key measure to increase the rate of efficiency improvements in passenger cars. The fuel consumption of vehicles can be improved in three ways: incremental technical efficiency improvements within powertrain technologies, market shifts to more efficient types of powertrains and by limiting increases in the size and performance of vehicles. This study quantifies the effect of each of these three drivers on the fuel consumption of British vehicles between 2001 and 2018 using driver-reported data on real-world fuel consumption. Analysis shows the introduction of EU fuel economy standards in 2008/09 had little effect on the rate of real technical efficiency improvements in British vehicles. Instead of adopting technical improvements at a higher rate or limiting the size and power of vehicles, these results suggest vehicle manufacturers met emissions standards by increasing the divergence between laboratory tests and real-world fuel consumption. This study adds to the growing literature calling for official test procedures to be representative of real-world driving.

Keywords: Transport; Technical improvement; Fuel economy Standards; Efficiency; Decomposition analysis (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:134:y:2019:i:c:s0301421519305786

DOI: 10.1016/j.enpol.2019.110991

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