New fuels for a greener drive

here's the article: http://www.cnn.com/2007/BUSINESS/05/18/biofuel.environment/index.html

the european union (EU), wants to impose stricter regulations on large car manufacturers to reduce CO2 emissions. the car companies argue that they should be given greater rewards for following the regulations in a timely manner and that they should be given at least 6 years to make the changes to their cars, based on the amount of time it takes to make those changes.

basically, the car companies want a government subsidy for following the regulations. i understand that it'll be a hard transfer for the companies, and i can see wantng/needing a subsidy for the first couple years, but the benefits outweigh the costs so much, in my opinion, that i would think the automotive industry would want to continue producing hybrids, even if they're more expensive. but then, that's me thinking like a tree hugger and not an econmist, so subsidize away!

also, just an amusing anecdote: i met my new baby cousin for the 1st time today, and i was holding her for a very long time. at one point, after i'd been holding her for about an hour, my great-aunt came over and said "my, my. you've got quite the market on that baby!" and i said, "aunt pat, i think you mean monopoly...cuz market makes no sense..." and then i was sad that i was correcting people in their econ terms...but it's become a bit of a habit, i'm afraid.