Pavement structures are fundamental elements of the automobile transportation system. Deterioration of pavement condition will increase both vehicle operating costs and greenhouse gas (GHG) emissions. Pavement condition may be maintained at an acceptable level through rehabilitation activities over the life span of a pavement. Traditional pavement rehabilitation policy is primarily based on minimization of the life-cycle cost incurred by both agencies and users. The environmental impacts associated with the cost-effective rehabilitation policy are typically ignored. This project develops a methodology for selecting pavement rehabilitation policy by considering both cost factor and environmental impact (energy consumption and pollutant emission). The project is completed in two phases. Phase I develops a life-cycle assessment (LCA) framework for pavement maintenance and rehabilitation. Phase II focuses on developing pavement performance models with consideration of both environmental factors and rehabilitation activities. Specifically, a post-overlay pavement roughness progression model in terms of international roughness index (IRI) is developed using long-term pavement performance (LTPP) data. Based on the post-overlay IRI model, the life cycle environmental and economic impacts of various overlay strategies are evaluated by the combined LCA and life cycle cost analysis (LCCA) approach. Finally, a multi-objective optimization framework is proposed for identifying the ecofriendly and cost-effective asphalt overlay strategy. Based on comparative analysis results, the inclusion of 30% reclaimed asphalt pavement in asphalt overlay is found to reduce life cycle energy consumption, GHG emissions, criteria air pollutants, and life cycle costs. For asphalt overlay projects, pavement surface roughness effects, construction activity, and material production are three major contributors to life cycle energy consumption and GHG emissions.