bought an old camper van and it puts out bad exhaust, will fail emissions, what...

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...causes fuel to not be burnt? i am guessing this is why the exhaust is so bad, its sort of a blueish exhaust and pretty strong smelling. what sort of repair am i looking at doing? is this a carb problem? the vehicle is a 1974 dodge tradesman van with a 360 v8 engine auto transmission
i should add, it is only getting around 8 miles per gallon which is absolutely terrible, it has to be an issue with how well it is burning the fuel.
 
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