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Suggest incentive approach, like Carl Moyer, to encourage car
buyers to move to higher mileage/lower polluting vehicles.
However, to make it most effective, I envision a carrot and stick
approach.

Carrot: purchasers of high mileage/low polluting vehicles would
get money back via rebates or credits. 

Stick: buyers of low mileage/high polluting vehicle would pay a
fee. These fees would fund the rebates.

Over time, the threshold for rebates could increase to push the
public to higher mileage/lower polluting choices.