A turbocharged 2.0L 4-cylinder direct injection spark ignition (DISI) engine designed for use with gasoline is simulated using one dimensional engine simulation. Engine design modifications - increased compression ratio, 2-step valve train with dual independent cam phasing and fuel injection timing - are considered in an effort to improve fuel economy with gasoline and take advantage of properties of ethanol fuel blends (up to E85). This paper discusses a methodology to use the simulation to quantitatively evaluate the design modification effects on fuel economy. Fuel consumption predictions from the simulation for each design are evaluated. The goal is to identify the best design with the constraints of hardware physical limitations, engine residual tolerance and knock tolerance. The result yields a specification for a 2-step valve train design and phasing requirements that can improve fuel economy for each compression ratio design.