Environmental Performance Labels for Vehicles: Context and Findings of Market Research for the U.S. Environmental Protection Agency

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Environmental Performance Labels for Vehicles: Context and Findings of Market Research for the U.S. Environmental Protection Agency

Jennifer Thorne Amann, Therese Langer and James Kliesch

April 2007

Executive Summary

There has been a resurgence of interest in environmental ratings and labels for vehicles, due to growing concern about oil dependence and climate change as well as the federal government’s failure to address these issues with meaningful transportation-sector initiatives. Both Connecticut and California are currently developing vehicle labels pursuant to state laws, and several non-governmental Web sites display extensive information on comparative environmental performance of new vehicle models.

The U.S. Environmental Protection Agency (EPA) has developed an environmental rating system for vehicles, which now appears on the agency’s Green Vehicle Guide Web site. The rating consists of one-to-ten scores on two scales: an air pollution scale and a greenhouse gas scale. Vehicles that score well on both scales are designated SmartWay^SM vehicles.

In conjunction with the development of this rating scheme, EPA investigated possible redesigns of the existing fuel economy label that would display the environmental ratings as well. This effort occurred in parallel with a separate EPA review of the accuracy and consumer-friendliness of the fuel economy label. Both of these explorations of labeling issues involved market research; EPA contracted with ACEEE to conduct the research on consumers’ understanding of vehicles’ environmental impacts and their reactions to various label designs that would display environmental information. Stakeholder interviews, consumer focus groups, and an online survey were conducted. Stakeholders included consumer and environmental advocates, academics, auto journalists, state government staff, and representatives of automobile dealers.

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37 pp., 2007, $25.00, T071