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In Diesel engines it is used to reduce the emissions of NOx. This is especially important because Diesels cannot use the same catalytic converters that gasoline engines use. In gasoline engines EGR is used to improve light-load fuel economy (by reducing throttling losses) and does reduce knock tendency at high loads, so it can allow higher compression ratios (especially in boosted engines. Higher compression ratios improve the fuel efficiency at all speeds and loads.
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