[Whaler]

Taken from "how stuff works"

Timing
The timing of the spark is important, and the timing can either be advanced or retarded depending on conditions.

The time that the fuel takes to burn is roughly constant. But the speed of the pistons increases as the engine speed increases. This means that the faster the engine goes, the earlier the spark has to occur. This is called spark advance: the faster the engine speed, the more advance is required.

Other goals, like minimizing emissions, take priority when maximum power is not required. For instance, by retarding the spark timing (moving the spark closer to the top of the compression stroke), maximum cylinder pressures and temperatures can be reduced. Lowering temperatures helps reduce the formation of nitrogen oxides (NOx), which are a regulated pollutant. Retarding the timing may also eliminate knocking; some cars that have knock sensors will do this automatically.