The paper aimed at establishing the relationship between age, engine capacity, fuel type and fuel efficiency and carbon emissions. The relationship was obtained using panel data on newly imported registered vehicle stock obtained from Uganda Revenue Authority. This involved collecting data on imported vehicle inventory into Uganda for the period from 2013 to 2017 which was later analysed using the stata software. The findings indicated a positive relationship between a vehicles age, engine capacity, vehicle category (Light Duty Vehicles, Medium Duty Vehicles and Heavy Duty Vehicles) and fuel efficiency and carbon emissions. A comparison with the global fuel efficiency targets indicated that more fuel was being consumed in Uganda compared to non-OECD countries. A reduction in fuel consumption and emissions was observed in petrol vehicles while diesel vehicles had increased carbon emissions and fuel consumptions due to an increase in engine capacities. The findings imply that government should develop policy options that promote vehicle fuel efficiency, transport system operators may undergo training in fuel efficiency issues that will result in an attitudinal change while academicians need to carry out more research comparing the effect of transport systems operators ages, level education and income on carbon emissions and fuel efficiency. The majority of research on fuel efficiency and carbon emissions uses survey data rather than panel data. Further, previous research is focused on vehicles that are already on the road rather than focusing on the effect of age, engine capacity, fuel type on fuel efficiency and carbon emissions.
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