ABSTRACT
Reducing greenhouse gas (GHG) emissions from the transportation sector forms an important part of the climate change policy agenda. For the last several years, countries have significantly tightened fuel economy standards for motor vehicles. For example, on 28 August 2012, the Obama administration introduced a standard that required automakers to nearly double the average fuel economy of new cars and trucks by 2025 (Vlasic 2012). On 23 April 2009, the European Parliament and the Council of the European Union approved regulations setting a target of 130 g/km for average emissions from new cars, which will be gradually phased in by 2015 (Global Fuel Economy Initiative 2013).
