
Cars in Europe are generally considered to be more fuel-efficient than those in other regions, particularly the US. This is due to a combination of factors, including stricter emissions regulations, higher fuel prices, and a preference for smaller, diesel-powered vehicles. While European tests for fuel efficiency have been criticised for being unrealistic and easily exploited by automakers, there is no denying that European cars are generally more fuel-efficient, with lower carbon dioxide emissions and better gas mileage.
| Characteristics | Values |
|---|---|
| Reason for higher fuel efficiency in Europe | Smaller vehicles, more diesel cars, higher fuel prices, stricter emission control, and better vehicle technology |
| Fuel efficiency measurement | Litres of fuel used per 100 kilometres covered |
| Fuel economy in the US | 25.5 mpg |
| Fuel economy in Europe | 74 mpg |
| CO2 emissions in 2012 | 132.2 gCO2/km |
| CO2 emissions target for 2015 | 130 gCO2/km |
| CO2 emissions target for 2020 | 95 gCO2/km |
| CO2 emissions target for 2030 | 55% reduction in emissions compared to 2021 |
| CO2 emissions target for 2035 | Zero tailpipe emissions for new light-duty vehicles |
| Average fuel consumption of LDVs in 2019 | 6.0 Lge/100 km |
| Average fuel consumption of LDVs in 2005 | 7.0 Lge/100 km |
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What You'll Learn

Smaller vehicles and diesels are more prevalent in Europe
The prevalence of smaller vehicles and diesel engines in Europe is a significant factor in the continent's fuel efficiency. The higher cost of petrol in Europe compared to the US means that small cars with low fuel consumption are the norm. Vehicles with more than four cylinders and 2-litre engines are uncommon, except for those who require speed and power. Most drivers are content with 1.4 to 1.8-litre engines.
The preference for diesel-powered cars in Europe can be traced back to the 1970s OPEC oil crisis. After this crisis, Europe's refiners were left with an excess of diesel, so governments began encouraging automakers to explore diesel-powered vehicles. European governments and automakers favoured diesel as it was believed to be a more efficient and environmentally friendly alternative to gasoline.
Starting in the 1980s, French and German automakers began actively developing diesel cars. By the late 1990s, diesel technology had improved significantly, with advancements in fuel injection, particularly common rail, allowing engines to run more quietly and efficiently than gasoline engines. As a result, diesel cars now make up one-third of Europe's vehicle fleet.
In contrast, the US has primarily relied on gasoline-powered vehicles, with diesel vehicles comprising only a small portion of the market. This is partly due to habit and diesel's reputation for noise and smoke. Additionally, the US has stricter emissions standards that apply to all vehicles, regardless of fuel type, making it challenging for diesel vehicles to meet these standards.
The emphasis on fuel economy and the popularity of diesel engines in Europe have contributed to the continent's higher fuel efficiency. The smaller engines and vehicles prevalent in Europe result in lower fuel consumption compared to larger vehicles commonly found in the US.
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Gas is cheaper in the US
While cars in Europe are generally more fuel-efficient, gas is cheaper in the US for several reasons. Firstly, the US has lower gas taxes compared to many other countries, including European nations. These low gas taxes fail to address the true social cost of driving, which includes negative externalities such as traffic congestion, car accidents, and air pollution. For example, in Germany, a higher gas tax has been shown to encourage the use of more fuel-efficient vehicles, which can lead to similar cost savings for drivers while also reducing negative externalities.
Additionally, the US has different fuel standards and regulations than Europe. In Europe, petrol typically has higher octane ratings, and diesel fuel has lower sulphur content. These differences can impact fuel consumption, with some claiming that the higher octane petrol in Europe leads to better engine performance and fuel efficiency.
The availability of cheaper gas in the US has several implications. One consequence is that there is less incentive for American car manufacturers to prioritize fuel efficiency in vehicle design. This is reflected in the types of vehicles commonly found in the US market, where larger vehicles with more powerful engines are more prevalent than in Europe. The abundance of inexpensive fuel also contributes to a greater overall dependence on cars in the US, which can have further societal impacts, such as urban sprawl and increased time spent commuting.
While cheap gas may provide short-term benefits to American consumers, there are potential long-term drawbacks. Low fuel prices can discourage the adoption of more fuel-efficient vehicles and contribute to higher emissions and pollution levels. Additionally, the external costs associated with driving, such as congestion and accidents, are not fully accounted for in the price of gas, leading to hidden societal costs that are shouldered by the public. Addressing these issues through policies like higher gas taxes or emissions regulations could help internalize these externalities and lead to more sustainable transportation choices.
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Stricter US emissions standards
The US has implemented stricter emissions standards for vehicles, which are applicable regardless of the type of fuel the vehicle is designed to use. The Environmental Protection Agency (EPA) has played a pivotal role in establishing and enforcing these standards. The EPA's Tier 3 standards, for example, aim to reduce greenhouse gas emissions from cars and light trucks, with projected savings for American families of over $1.7 trillion in fuel costs between 2012 and 2025.
The EPA has also set standards for passenger cars, light-duty trucks, medium-duty vehicles, and heavy-duty vehicles for model years 2027 through 2032 and beyond. The Tier I standard was adopted in 1991 and was phased in from 1994 to 1997. The Tier II standard, adopted in 1999, was phased in from 2004 onwards, with the two least restrictive bins for passenger cars removed by the end of 2006.
The EPA collaborated with California, which has special permission to set its own stricter standards, to implement stricter national emissions standards for model years 2017-2025. The EPA adopted California's fuel economy and greenhouse gas standards as the national standard for the 2016 model year. California's Low-Emission Vehicle (LEV) program sets six automotive emission standards stricter than the national Tier regulations. The state's severe vehicle air pollution problems, particularly in the Los Angeles metropolitan area, have driven the need for stricter standards.
Other states have the option to follow either the national standard or California's stricter standard. The EPA has also established vehicle inspection and maintenance programs (I/M) in non-attainment states, with optional programs in other areas. These programs require states to set up emission testing facilities to ensure that in-use vehicles meet emissions requirements and are maintained and repaired as necessary.
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Differences in testing procedures
One of the main reasons for the discrepancy in fuel efficiency between European and US cars is the difference in testing procedures. The New European Driving Cycle's (NEDC) test procedure is shorter and slower than the US Environmental Protection Agency's (EPA) procedure. For example, the European "Urban" test is 13 minutes long, while the EPA's city test is 31 minutes long. The EPA's city test also involves reaching speeds of up to 60 mph, while the European test only involves accelerating to 30 mph. The EPA also includes additional tests, such as 'High Speed', 'Air Conditioning', and 'Cold Temperature', to better reflect real-world driving conditions.
The way fuel efficiency is measured also differs between Europe and the US. European figures are measured in litres of fuel used per 100 kilometres covered, while North American figures are measured in distance per fuel quantity. When converting European figures to the more familiar miles per gallon (MPG) measure, they are generally given in Imperial gallons, which are 20% larger than US gallons. This means that an "80-mpg" European car would actually be closer to 67 mpg in the US.
In addition to testing procedures, there are also differences in emission standards and regulations between Europe and the US. Europe has stricter emission standards, which have resulted in a greater focus on fuel economy in European markets. The EU introduced the "car labelling Directive" in 1999, which required displaying the vehicle's fuel efficiency and CO2 emissions. Voluntary CO2 emission standards were also introduced, becoming mandatory by 2009. The EU has set targets for reducing emissions, including a 55% reduction in passenger car emissions by 2030 and effectively requiring all new light-duty vehicles to have zero tailpipe emissions by 2035.
While European cars may appear more fuel-efficient on paper, it's important to note that there is a significant gap between the tested fuel economy values and real-world driving fuel consumption. This gap is due to various factors, including differences in driving styles, road conditions, and auxiliary systems such as air conditioning.
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Improved technology
The improved fuel efficiency of cars in Europe is attributed to various factors, with improved technology being a significant contributor. Here is a detailed breakdown of how improved technology has played a role:
Technological advancements in vehicle design:
The automotive industry in Europe has witnessed significant technological advancements in vehicle design and engineering. These advancements have led to the development of more fuel-efficient engines, such as direct injection systems, improved engine management systems, and the use of lightweight materials. These technologies help optimize fuel combustion, enhance engine performance, and reduce overall fuel consumption.
Emphasis on fuel economy:
European car manufacturers and consumers have placed a strong emphasis on fuel economy. This focus has driven the development and adoption of technologies that improve fuel efficiency. For example, the widespread use of turbo engines and low-capacity engines in Europe contributes to reduced fuel consumption. The popularity of diesel engines, which are known for their fuel efficiency, is also a contributing factor.
Alternative fuel vehicles (AFVs):
The rise of alternative fuel vehicles (AFVs) in Europe has played a significant role in improving fuel efficiency. AFVs include electric cars, hybrids, and vehicles that run on alternative fuels such as liquid petroleum gas and ethanol. The European Environment Agency reported that annual pure electric vehicle sales increased significantly between 2010 and 2012, with most of these cars registered in France and Germany. The increasing adoption of AFVs contributes to reduced fuel consumption and lower emissions.
Stringent emission standards and regulations:
The European Union has implemented stringent emission standards and regulations, such as the 'car labelling Directive' (Directive 1999/94/EC), which requires displaying a vehicle's fuel efficiency and CO2 emissions. These regulations have incentivized manufacturers to incorporate advanced technologies that reduce emissions and improve fuel efficiency. The EU's long-term target of 95 gCO2/km by 2020, and the "Fit for 55" initiative's goal of a 55% reduction in passenger car emissions by 2030, have further driven the development and adoption of improved technologies.
Real-world driving data and adjustments:
European testing procedures, such as the New European Driving Cycle (NEDC), have been criticized for being unrealistic and not accurately representing real-world driving conditions. However, organizations like the European Environment Agency (EEA) and the European Union (EU) are working to bridge this gap. They collect and analyze real-world driving data to identify discrepancies between tested and actual fuel economy values. This data helps in setting more accurate fuel efficiency standards and encourages the development of technologies that deliver improved fuel efficiency in real-world driving scenarios.
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Frequently asked questions
Yes, cars in Europe are generally more fuel-efficient than those in the US. This is due to a variety of factors, including the type of cars people buy, the emphasis on fuel economy, and stricter emissions standards.
There are several factors that contribute to the higher fuel efficiency of European cars:
- Smaller vehicles: In Europe, smaller vehicles and diesel engines are more prevalent, which are typically more fuel-efficient than larger vehicles with gasoline engines.
- Fuel economy emphasis: There is a greater emphasis on fuel economy in Europe due to higher fuel prices.
- Stricter emissions standards: Europe has stricter CO2 emissions standards, which have helped improve fuel efficiency.
- Improved technology: Advancements in vehicle technology have led to more fuel-efficient cars in Europe.
The testing procedures for fuel efficiency differ between Europe and the US. The New European Driving Cycle (NEDC) test is shorter and slower than the EPA's test in the US. The European "Urban" test, for example, is 13 minutes long, while the EPA's city test is 31 minutes long. The EPA's test also includes higher speeds and additional variables such as 'High Speed', 'Air Conditioning', and 'Cold Temperature' tests. Additionally, the EPA uses a different measurement system, with US gallons being 20% smaller than Imperial gallons used in Europe.











































