Vehicular networking is envisioned to be a key technology area for significant growth in the coming years. Although the expectations for this emerging technology are set very high, many practical aspects remain still unsolved for a vast deployment of vehicular networks. This dissertation addresses the enabling physical layer techniques to meet the challenges in vehicular networks operating in mobile wireless environments. Considering the infrastructure-less nature of vehicular networks, we envision cooperative diversity well positioned to meet the demanding requirements of vehicular networks with their underlying distributed structure. Cooperative diversity has been proposed as a powerful means to enhance the performance of high-rate communications over wireless fading channels. It realizes spatial diversity advantages in a distributed manner where a node uses others antennas to relay its message creating a virtual antenna array. Although cooperative diversity has garnered much attention recently, it has not yet been fully explored in the context of vehicular networks considering the unique characteristics of vehicular networks, this dissertation provides an error performance analysis study of cooperative transmission schemes for various deployment and traffic scenarios. In the first part of this dissertation, we investigate the performance of a cooperative vehicle-to-vehicle (V2V) system with amplify-and-forward relaying for typical traffic scenarios under city/urban settings and a highway area. We derive pairwise error probability (PEP) expressions and demonstrate the achievable diversity gains. The effect of imperfect channel state information (CSI) is also studied through an asymptotical PEP analysis. We present Monte-Carlo simulations to confirm the analytical derivations and present the error rate performance of the vehicular scheme with perfect and imperfect-CSI. In the second part, we consider road-to-vehicle (R2V) communications in which roadside access points use cooperating vehicles as relaying terminals. Under the assumption of decode-and-forward relaying, we derive PEP expressions for single-relay and multi-relay scenarios. In the third part, we consider a cooperative multi-hop V2V system in which direct transmission is not possible and investigate its performance through the PEP derivation and diversity gain analysis. Monte-Carlo simulations are further provided to confirm the analytical derivations and provide insight into the error rate performance improvement.