|Energy Information Administration Residential Transportation Energy Consumption Survey Channel.  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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              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        Home > Transportation 
        Home Page > **Chapter 
        4. Fuel Economy, Consumption, and Expenditures**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|**Chapter 4. Fuel Economy, 
        Consumption, and** **Expenditures**
           This chapter analyzes 
        trends in fuel economy, fuel consumption, and fuel expenditures, using 
        data unique to the Residential Transportation Energy Consumption Survey, 
        as well as selected data from other sources. Analysis topics include the 
        following:Following the oil 
          supply and price disruptions caused by the Arab oil embargo of 1973-1974, 
          motor gasoline price increases, the introduction of corporate average 
          fuel economy standards, and environmental quality initiatives helped 
          to spur major changes in vehicle technology. But have the many advances 
          in vehicle technology resulted in measurable gains in the **fuel 
          economy** of the residential vehicle fleet?Despite national 
          concerns about dependence on foreign oil and the deleterious effect 
          on the environment of fossil fuel combustion, residential vehicle fleet 
          **fuel consumption** was almost 8 billion gallons higher 
          in 1994 than it had been in 1988. What factors led to the increase?Residential expenditures 
          for energy averaged $2,571 per household per year in 1994.(1) How much of the total was attributed to residential**vehicle fuel expenditures**? And how did those expenditures compare 
          with other vehicle-related operating expenses, such as insurance, financing, 
          licensing, and depreciation?
      **Fuel Economy Increased a Small 
        Amount**
      During the1983-to-1991 period, the overall fuel economy of the residential 
        fleet increased by nearly 28 percent (about 3.5 percent per year), which 
        helped to hold down total consumption. However, for the 1991-to-1994 period, 
        the overall increase in fuel economy from 19.3 miles per gallon (mpg) 
        to 19.8 mpg was less than 3 percent (less than 1 percent per year). The 
        large increase in the fleet fuel economy in the 1983-to-1991 period was 
        due primarily to two factors: vehicles manufactured after 1982 had better 
        fuel economy, and large numbers of pre-1983, lower fuel-economy vehicles 
        were taken out of service. Each year, there are fewer pre-1983 vehicles 
        to be replaced by newer vehicles, thus diminishing the opportunity for 
        further increases in overall fleet fuel economy through replacement of 
        older, lower fuel-economy vehicles with newer, higher fuel-economy vehicles.
      The average fuel economy for the residential fleet was 19.8 mpg in 1994, 
        an 8-percent increase over 1988, when household vehicles averaged 18.3 
        mpg. Average fuel economy would have increased by a greater amount if 
        all technological improvements had been devoted solely to that purpose 
        rather than to increasing vehicle size and performance. Passenger cars, 
        averaging 21.9 mpg, had the highest fuel economy. Large vans, averaging 
        13.8 mpg, exhibited the worst fuel economy.
      **text box:what is the diifference between fuel  economy and fuel efficiency?**
      **On Average, Newer Residential Vehicles Showed Little 
        Improvement in Fuel Economy**
      In general, fuel economy varies considerably by age and type of vehicle. 
        However, there was relatively little variation for model years 1980 and 
        later (Figure 4.1), which represented nearly 90 percent of all household 
        vehicles. If all vehicles of model years 1979 and earlier were removed 
        from the residential fleet, the overall fuel economy would only increase 
        from 19.8 mpg to 21.0 mpg. Any major increase in future years must therefore 
        derive not from the retirement of older vehicles but from improvements 
        in technology, and buying patterns of consumers.
      figure4.1:average fuel economy of residential vehicles for model years through 1995
      Source: 
        Table 5.3 in this report.
      **Federal Government 
        Set Lower Fuel Economy Standards for Light Trucks**
      One of the major factors 
        affecting the average fuel economy is the composition of the vehicle fleet. 
        New passenger cars in 1994 were subject to CAFE standards of 27.5 mpg 
        (unadjusted) and the overall passenger fleet averaged 21.9 mpg, compared 
        with 19.7 mpg in 1988 (Figure 4.2). New vehicles not classified as passenger 
        cars--pickup trucks, sport-utility vehicles, minivans, and large vans, 
        all classified as light-duty trucks-- were subject to lower CAFE standards 
        of 20.5 mpg (unadjusted) and the overall fleet averaged 16.8 mpg in 1994. 
        That average compares with 15.3 mpg in 1988. In 1994, large vans had the 
        lowest mpg average of any category of light-duty truck and minivans had 
        the highest. In addition to having lower CAFE standards, those vehicles 
        were also exempt from the "gas guzzler" tax, which may have 
        an effect on encouraging consumers to switch from larger, less fuel economic 
        passenger cars to vehicles like minivans and sport utility vehicles which 
        are even less fuel economic.
      figure 4.2:average fuel economy of residential vehicles by type of vehicle 1988 and 1994
      Sources: 1988--Energy Information Administration, 
        *Household Vehicles Energy Consumption 1988*, DOE/EIA-0464(88) 
        (Washington, DC, February 1990), Table 8. 1994--Table 5.3 in this report.
      The number of vehicles getting less than 13 miles per gallon decreased 
        rapidly from 1988 to 1994 (Figure 4.3). Residential vehicles getting 22 
        or more mpg increased by nearly 38 percent between 1988 and 1994. The 
        number of vehicles in the range between 13 and 21.9 mpg increased, especially 
        in the 16 to 18.9 miles per gallon category. Those intermediate ranges 
        are where many new minivans, sport-utility vehicles, pickup trucks, and 
        large vans would fall.
      figure4.3:number of residential vehicles by fuel economy, 1988 and 1994
      Sources 
        1988--Energy Information Administration, *Household Vehicles Energy 
        Consumption 1988*, DOE/EIA-0464(88) (Washington, DC, February 1990), 
        Table 6 1994--Table 5.1 in this report.
      **Household 
        Composition and Income Had Little Effect on Residential Vehicle Fuel Economy**
      The fuel economy of 
        vehicles in residential households showed little variation by household 
        characteristics. Households without children did show an improvement in 
        the fuel economy of their vehicles when the oldest adult was under 35 
        years of age, as compared with households in which the oldest adult was 
        60 years old or more (Figure 4.4). Household income appears to have had 
        even less effect on the fuel economy of vehicles in the household than 
        did household composition. Interestingly (although not statistically significant), 
        households with less than $5,000 of annual income had the most fuel-economic 
        vehicles (Figure 4.5).
      figure4.4:average fuel economy of residential vehicles by household composition, 1994
      Note: 
        Household composition refers to the number and ages of people in the household. 
        Source: Table 5.3 in this report.
      figure4.5:average fuel economy of residential vehicles by annual household income, 1994
      Sources: 
        Table 5.3 in this report.
      text box:approaches to providing fuel economy information
      
      
      **Fuel Consumption Increased in 1994**
      In 1991, 82.8 billion gallons of motor fuel were consumed by the passenger 
        cars, minivans, sport-utility vehicles, pickup trucks, and large vans 
        that comprise the residential vehicle fleet (Figure 4.6). That level of 
        consumption was not significantly different from the 1988 level of 82.4 
        billion gallons. But in 1994, consumption totaled 90.6 billion gallons, 
        a 9-percent increase. The nearly 8-billion-gallon increase was roughly 
        the equivalent of motor fuel imports of half a million barrels per day 
        for a year.
      figure4.6:total residential vehicle fuel consumption, 1983, 1985, 1988, 1991, and 1994
      Sources: 
        1983--Energy Information Administration (EIA), *Consumption Patterns 
        of Household Vehicles 1983*, DOE/EIA-0464(83) (Washington, DC, January 
        1985), Table 11. 1985--EIA, *Consumption Patterns of Household Vehicles 
        1985*, DOE/EIA-0464(85) (Washington, DC, April 1987), Table 8. 1988--EIA, 
        *Household Vehicles Energy Consumption 1988*, DOE/EIA-0464(88) 
        (Washington, DC, February 1990), Table 6. 1991--EIA, *Household Vehicles 
        Energy Consumption 1991*, DOE/EIA-0464(91) (Washington, DC, December 
        1993), Table 8. 1994--Table 5.1 in this report.
      The number of vehicle-miles 
        traveled showed steady growth during the 1991-to-1994 period. One reason 
        that total consumption rose more rapidly than the number of miles traveled 
        during the period was the slowdown in the increase in the fuel economy 
        of the residential fleet.
      **Passenger 
        Cars Consumed the Largest Share of Motor Fuel**
      Although passenger 
        cars still accounted for most of the motor fuel consumed by residential 
        vehicles, their share of the total declined from nearly 70 percent in 
        1988 to 60 percent in 1994 (Figure 4.7). The decrease came as a result 
        of growing consumer preferences for minivans, pickup trucks, and sport-utility 
        vehicles. In the future, as light trucks continue to increase as a percentage 
        of the residential fleet, their higher number of vehicle-miles traveled 
        and lower fuel economies will accelerate the total amount of fuel they 
        consume.
      figure4.7:total residential vehicle fuel consumption by type of vehicle, 1988 and 1994
      Sources: 
        --1988 Energy Information Administration, *Household Vehicles Energy 
        Consumption 1988*, DOE/EIA-0464(88) (Washington, DC, February 1990), 
        Table 6. 1994--Table 5.1 in this report.
      
      **Passenger 
        Cars Averaged the Least Motor Fuel Consumption per Vehicle**
      At 514 gallons per 
        year, passenger cars registered the smallest fuel consumption per vehicle 
        of all vehicle types in the residential fleet (Figure 4.8). That amount 
        was similar to the 526-gallon average reported in 1988. Light-duty residential 
        trucks (that is, all residential vehicles other than passenger cars) showed 
        an increase in average consumption from 652 gallons per year in 1988 to 
        712 gallons per year in 1994. Fuel consumption by pickup trucks, the most 
        prevalent of light trucks in the residential fleet, increased nearly 11 
        percent.
      figure4.8:average residential vehicle fuel consumption by type of vehicle 1998 and 1994
      Sources: 
        --1988 Energy Information Administration, *Household Vehicles Energy 
        Consumption 1988*, DOE/EIA-0464(88) (Washington, DC, February 1990), 
        Table 8. 1994--Table 5.3 in this report.
      
      **The Newest 
        Vehicles Consumed the Most Fuel Because They Were Driven More**
      The newest vehicles 
        in 1994 (model years 1993 and later) were driven more than 60 percent 
        farther than the oldest vehicles (model years 1979 and earlier). Nevertheless, 
        the oldest vehicles, because of their lower fuel economies, consumed nearly 
        as much fuel on average as did the newest vehicles. Motor fuel consumption 
        by vehicles of model years 1994 and 1995 averaged 697 gallons per year 
        in 1994 (Figure 4.9). By comparison, vehicles of model years 1980 through 
        1982 consumed an average of 510 gallons per year in 1994. Although, as 
        would be expected, the number of vehicles older than model year 1980 decreases 
        over time, in 1994 there were still about 20 million of them in the residential 
        fleet.
      figure4.9:average residential vehicle fuel consumption per vehicle for model years through 1995
      Source: 
        Table 5.3 in this report.
      **Vehicles in 
        the South Consumed the Most Fuel**
      Average fuel consumption 
        per vehicle did not vary much by region (Figure 4.10). Vehicles in the 
        South consumed an average of 598 gallons per year. Vehicles in the Midwest 
        and West averaged 580 gallons per year and 568 gallons per year, respectively. 
        In the Northeast, vehicles consumed 545 gallons per year, the lowest average 
        of the four regions.
      figure4.10:average annual residential vehicle fuel consumption by region, 1994
      Source: 
        Table 5.3 in this report.
      **Fuel Expenditures Varied by Household 
        Characteristics**
      In households reporting owning or having access to at least 
        one vehicle in 1994, residential expenditures for energy for transportation 
        averaged $1,234. Which households were likely to spend more than the average? 
        And how did average residential expenditures compare with residential 
        expenditures for energy for all other uses, including space heating?
      **Inflation-Adjusted Expenditures for Vehicle Fuel 
        Varied Very Little Over Time**
      The inflation-adjusted cost of purchasing fuel for residential 
        vehicles remained relatively constant from 1988 through 1994 (Figure 4.11). 
        During that period, the average fuel consumption per vehicle also changed 
        little. The improvement in fuel economy for the residential vehicle fleet 
        helped to keep expenditures and consumption nearly unchanged.
      figure4.11:average fuel expenditures per residential vehicle by survey year, 1980, 1983, 1985, 1988, 1991, 1994
      Sources:**Fuel Expenditures:** 1983--Energy Information Administration (EIA), 
        *Consumption Patterns of Household Vehicles 1983*, DOE/EIA-0464(83) 
        (Washington, DC, January 1985), Table 7. 1985--EIA, *Consumption Patterns 
        of Household Vehicles 1985*, DOE/EIA-0464(85) (Washington, DC, April 
        1987), Table 8. 1988--EIA, *Household Vehicles Energy Consumption 1988*, 
        DOE/EIA-0464(88) (Washington, DC, February 1990), Table 8. 1991--EIA, 
        *Household Vehicles Energy Consumption 1991*, DOE/EIA-0464(91) 
        (Washington, DC, December 1993), Table 10. 1994--Table 5.3 in this report. 
        **Implicit Price Deflators:**EIA, *Annual Energy Review 
        1995*, DOE/EIA-0384(95) (Washington, DC, July 1996), Table E1.
      **Household 
        Composition and Income Affected Fuel Expenditures**
      Household 
        composition influenced motor fuel expenditures and average fuel expenditures 
        per household varied widely. Households with a single adult aged 60 years 
        old or more spent on average only $498 per year, while households with 
        children aged 16 or 17 years spent on average $1,727 per year (Figure 
        4.12).
      figure4.12:average vehicle fuel expenditures per household, 1994
      Source: 
        Table 5.2 in this report.
      Fuel 
        expenditures per household also varied by household income. In general, 
        higher-income households had higher expenditures for vehicle fuel (Figure 
        4.13). For example, householders with annual incomes of $75,000 or more
      figure4.13:average vehicle fuel expenditures and household energy expenditures by household income, 1994
      Note: 
        Household energy expenditures exclude household vehicle fuel expenditures. 
        Source: Table 5.18 in this report.
      reported 
        expenditures of $1,692 per year, whereas the poorest households (those 
        with incomes of less than $5,000) reported expenditures of $923. Energy 
        expenditures for residential transportation were close to half of the 
        average household's total energy expenditures. Expenditures for non-transportation-related 
        energy needs, such as heating, air-conditioning, lighting, and cooking, 
        were $1,337, only slightly higher than the $1,234 spent for vehicle fuel.
      1.Table 5.18 in this report.
      File Last Modified: 
        February 1, 2002
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