Recovery of kinetic energy during driving cycles is the most effective option to improve fuel economy and reduce green house gas (GHG) emissions. Flywheel kinetic energy recovery systems (KERS) may boost this efficiency up to values of about 70%. An engine and vehicle model is developed to simulate the fuel economy of a compact car equipped with a TDI diesel engine and a KERS. Introduction of KERS reduces the fuel used by the 1.6L TDI engine to 3.16 liters per 100 km, corresponding to 82.4 g of CO₂ per km. Downsizing the engine to 1.2 liters as permitted by the torque assistance by KERS, further reduces the fuel consumption to 3.04 liters per 100 km, corresponding to 79.2 g of CO₂ per km. These CO₂ values are 11% better than those of today's most fuel efficient hybrid electric vehicle.