Vehicle automation can improve fuel economy of the car by optimizing the drive cycle, as well as increasing congested traffic speeds by an estimated 8%-13%. Reduced traffic congestion and the improvements in traffic flow due to widespread use of automated cars will translate into higher fuel efficiency, ranging from a 23%-39% increase, with the potential to further increase. Additionally, self-driving cars will be able to accelerate and brake more efficiently, meaning higher fuel economy from reducing wasted energy typically associated with inefficient changes to speed. However, the improvement in vehicle energy efficiency does not necessarily translate to net reduction in energy consumption and positive environmental outcomes. It is expected that convenience of the automated vehicles encourages the consumers to travel more, and this induced demand may partially or fully offset the fuel efficiency improvement brought by automation. Overall, the consequences of vehicle automation on global energy demand and emissions are highly uncertain, and heavily depends on the combined effect of changes in consumer behavior, policy intervention, technological progress and vehicle technology.