CO2 is now considered a pollutant

The US Govt. just ruled that CO2 is a pollutant. Basically, The Supreme Court has ruled that the EPA can regulate carbon emissions.

This should have a profound effect on both technologies as well as pricing related to the tech. Cars will become smaller and hybrids and other technologies should become more prevalent.

Here is a quote from today's Chicago Tribune:

"For example, the industry is lobbying against a Bush administration proposal to raise the fuel economy standard 4 percent annually. Cars would have to average 34 miles per gallon in the year 2017 under that plan instead of the current 27.5.

Bob Lutz, vice chairman of General Motors Corp. and GM's global product development director, predicted that the cost to consumers to accomplish that fuel-economy goal would be at least $5,000 per vehicle.

In an interview at the New York Auto Show, Lutz also downplayed the expectation that car companies can save the day.

"Anyone who thinks the auto industry can invent something to make CO2 go away is just dreaming," he said." The complete article can be found here. (Requires registration.)

This reminds me of the gas guzzler tax that was enacted on cars that perform under a specified MPG figure back in the 1980s. Ferrari buyers shrugged their shoulders underneath their polo sweaters and just paid the tax. Others bought Mazda GLCs and Rabbit Diesels...

In this case the only ways to reduce CO2 emissions is to use less fuel- ways (that may be painful to America at large) are to either drive less, drive a smaller vehicle, or a combination of the two.

The other obvious route is to take a closer look and spend more development dollars on renewable enery options, like wind and solar power. The prices on both of these sources are coming down, but still are a long way off in totally replacing dependence on fossil fuel.