Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/305283 
Year of Publication: 
2024
Series/Report no.: 
SAFE Working Paper No. 433
Publisher: 
Leibniz Institute for Financial Research SAFE, Frankfurt a. M.
Abstract: 
We examine the EU car labelling regime for CO2 emissions and fuel efficiency under Directive 1999/94/EC and document strongly diverging national labelling methodologies. Our contribution is fourfold. First, we distil the most relevant economic and behavioural research findings on car labelling. Labels effectively help consumers make informed decisions if they are well-designed, comprehensible, and informative about hidden costs. Second, we compare the national car labelling methodologies and find stark inconsistencies, undermining the EU's effort to decarbonise the car sector. Empirically, we find heterogeneous distributions of the national labels if applied to the national and EU car fleets. Third, we assess the EU energy efficiency labelling regime for electric appliances under Regulation (EU) 2017/1369 as a labelling role model. Finally, we propose a standardised EU car label with comparative information in two distinct coloured scales using absolute labelling thresholds for CO2 emissions and fuel or energy efficiency.
Subjects: 
Car labels
CO2 emissions
Energy efficiency
Fuel economy
Directive 1999/94/EC
Passenger cars
Sustainable transport
JEL: 
R4
K30
K32
L92
L98
Q48
Q58
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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