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Just over two years ago, the French government adopted a FeeBate system for new cars.  The  “Bonus-Malus” system provides for a rebate the more efficient (and lower polluting) a car, with a fee (a penalty) for the lower efficiency (higher pollution) options.  Roughly, less than 35 miles per gallon and a buyer pays a premium for the fuel efficiency (from 200 Euros (roughly $US280) to as much as 2500 Euros (or $US 3500) . Better than 44 mpg and rebates begin (up to 5000 Euros (over $US7000) for an electric car). The system didn’t legislate away inefficient transportation options, but it does create a pretty explicit upfront statement and incentive to prospective car buyers to value higher efficiency choices.  Walk into an auto dealership in France and cars qualifying for a “Bonus” have rather prominent signs on the windshield.

This program, as well, sends a strong signal to the auto industry: there is real, sustained market advantage for driving greater fuel efficiency. The results of this are playing out in new automotive options.  Renault, for example, has now updated the Clio.

The new version of Clio dCi 85 Renault eco² produces 98 grams CO₂ per kilometer, corresponding to combined cycle fuel consumption of 3.7 liters/100km (63.6 mpg US) and a theoretical range of 1,486 km (923 miles).

A series of changes to the engine and the rest of the vehicle resulted in a significant reduction in CO₂ emissions of 17 g/km (an improvement of 15%) without any impact on the punch of the vehicle.

What is critical about this and the connection to Bonus-Malus?  The new diesel Clio now falls below 100 grams of CO₂ per kilometer, which places it in the second highest bonus class of the program.  The previous CLio, with 115 grams CO₂/km, qualified for a 700 Euro (roughly $US1000) rebate.  The new version now qualifies for a 1000 Euro rebate, an over $400 increase over the previous rebate. And, well, an additional “digit”.  Just like 0.99 looks cheaper, moving from three numbers (700) to four (1000) is a shift that has a psychological impact on shoppers.

There is a similar move in the gasoline version, which will see a shift from 137 grams CO₂/km to 129.  The old version didn’t qualify for a rebate while the new one squeaks into the bonus program, as the 121-130 grams CO₂/km qualifies for a 200 Euro (roughly $US300) rebate.

Without question, Renault had the FeeBate program clearly in mind while working to increase the Clio’s fuel efficiency.  And, so do other auto-makers.

Here is a government policy that is working to accelerate consumer demand for more efficient products through creation of technology-neutral standards that is not just boosting, directly, sales of the greater numbers of fuel-efficient automobiles, but it is sparking (as desired / intended) an increasing number of fuel-efficient automobile options for those consumers to choose from when purchasing a new car.

Note: Material on Feebates

• Briefing to California Air Resources Board (CARB), Feb 09 (pdf)
• European Commission, Feebate and scrappage policy instruments (109 pages, pdf)