Abstract
This article compares and analyses Japanese and European policies on fuel economy regulation, which of those are the highest fuel economy standards in the world, and have been formulated based on co-regulation. In Japan, fuel economy regulation has developed through a cooperative process involving government, industry and academia participate, and requiring regular revisions over a number of years. In contrast, European regulations on carbon dioxide emissions from vehicles, which have involved various actors with different interests, have attempted a variety of different approaches, including industry self-regulation, voluntary agreements between the European Commission and the industry, and the application of EU law.