Draft proposal prepared by the Ministry of Urban Development, Government of India. To promote energy efficiency as a core component of urban planning, the plan calls for: Extending the existing Energy Conservation Building Code; a greater emphasis on urban waste management and recycling, including power production from waste; strengthening the enforcement of automotive fuel economy standards and using pricing measures to encourage the purchase of efficient vehicles; and incentives for the use of public transportation.

This working paper describes the effect that taxes and other incentives in the European Union (EU) have had on CO2 emissions, and it identifies a shift over time towards tax-optimized vehicles. In addition to vehicle CO2 emission standards imposed at the European Union level, several EU member states have put in place tax and other incentives to encourage consumers to buy more efficient vehicles. The authors examine the effect those policies have had on CO2 emissions specifically.