Probably a diesel rabbit front clip with an auto would be pretty cheap (thinking I could do it for $1000ish) and gives mileage similiar to your estimates using a regular (and epa "approved") engine/drivetrain and minimal engineering. And there is obviously a LOT of room for improvement there using a stick shift and technique and a downsized engine. Just saying. You can't pulse and glide a genset very efficiently.
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