[SevenMinusOne]

2) Subsidize hybrids and electric cars

Agree with most of what you said but the above - Subsidizing something completely takes off the cost-benefit analysis needed to begin with -

Allow the markets to bring hybird cars to us - That is the only true test to if the hybird is actually worth the cost via the alternative of just paying high fuel prices.

[bahblahbah]

Well actually we are already subsidizing them. IIRC, its like $1 billion through 2010. And you subsidize something like hybrids thinking that it would spread up the process of becoming price viable. There are many things we subsidize because they have a good lobby behind them like Ethanol which really aren't realistic energy alternatives.