A coordinated package of fiscal and regulatory policies will need to come into play for fuel-reduction benefits to be realized from these future improvements. Effective policies would include a “feebate” scheme, in which customers pay an extra fee to buy big fuel-consumers but get a rebate if they buy small, fuel-efficient models. The feebate combines well with stricter Corporate Average Fuel Economy (CAFE) standards—in other words, with regulations that require automobile makers to produce products that consume less fuel. Adding higher fuel taxes to the package would further induce people to buy fuel-efficient models. And tax incentives could spur more rapid changes in the production facilities for new technologies. All these measures may be needed to keep us moving forward.



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Add CommentCombustion engines may be adapted to use hydrogen and/or gasoline using a double injection system. Operation can change from hydrogen to gasoline when no hydrogen pump is on the road. BMW, GM and others have such cars. China and India, desperate in need to reduce dependence on oil, are highly interested on the global Hydrogen initiative, using solar energy according to Kosuke Kurokawa and the global grid according to Fuller.
Reply | Report Abuse | Link to thisKarl Heinz Wilm
www.desertenergyproject.net/Global_Initiative.pdf
"First, it is well suited to its primary context, the developed world. Over decades, it has had time to evolve so that it balances economic costs with users needs and wants. Second, this vast optimized system relies completely on one convenient source of energypetroleum"
Reply | Report Abuse | Link to thisIf you start with false assumptions about the "optimization" of current transport systems, the problem can never be solved. Our current system of provision of vast areas of subsidised car parking, and roads are not based on empirical research. Users needs and costs cannot be addressed when they have no choice or knowledge of how their money is spent. Vast sums of money are wasted building infrastructure which is worse than useless, it is not efficient in terms of time, economics, space and land use not to mention the negative health effects of a life spent sitting on a car seat.