introduced more stringent diesel emission standards which can
only be met through a combination of improved engine technology,
and of higher fuel quality [21]. China and India have also
seen an upward surge in urbanization with rapid economic growth,
resulting in a rapid increase in the demand for personal mobility
and the number of motorized 2–3 wheelers and cars. These countries
have developed and implemented fuel economy standards
which contributed to a potential fuel savings. Other Asian countries
have developed and implemented a variety of vehicle-related
policies, including taxation. However, none appears to have issued
policies that require or encourage CO2 reduction or fuel efficiency
improvement in new cars and other light-duty vehicles [22]. The
new vehicle standard in Asia is shown in Table 1 [23].
Motorization in ASEAN countries is the main driver for transport
externalities. Fig. 8 shows the growth of motor vehicles by
mode in six ASEAN countries [12]. Current estimates show that if
the reference scenario pervades in the future, the vehicle increase