This energy environment review has two parts. The first addresses greenhouse gas (GHG) emissions and examines energy consumption patterns across key economic sectors with a view to forecasting future energy demand and supply, and associated emissions of pollutants (both local and global pollutants but focusing on GHGs. Several energy-pricing instruments for reducing GHG emissions are then examined in terms of their impact on energy consumption and resulting emissions as well as their macroeconomic and socioeconomic consequences. the second part targets urban air pollution ariding from transport emissions and, more specifically, gasoline-fueled vehicles. It examines vehicle fleet characteristics in terms of vehicle technology, vehicle category, age, service and engine size, and relations to emissions. It reviews the history of the vehicle inspection and maintenance (I/M) program in Mexico City to distill lessons, and analyzes the emissions data collected in then I/M program. It studies the link between fuel quality and vehicle performance , and discusses the ramifications of the proposed gasoline specifications in the context of the status of the refining sector in Mexico, the effects of fuel quality development in North America, and likely future vehicle emissions regulations in Mexico.