I can tell you that at least in the class 8 trucking world, the manufacturers know very well what the realistic conditions are. They work very hard to do just enough to pass the emissions regulations and then they move everything around elsewhere in the calibration maps to sacrifice the performance in the tails areas and get the best possible performance in the areas that customers actually drive the trucks.
Here is a story along a similar lines where Williams hosted a competition to drive an F1 car. http://www.britsonpole.com/the-fan-the-f1-car-and-the-experience-of-a-life-time-post16906
2. Maybe we could recycle used paper into fuel?
All you need for that is a match.