Hi Niky,

That is a interesting counterpoint re hybrids insofar as the U.S. situation is concerned and which makes sense. Unfortunately, given the economic situation these days, a lot of people can't afford to choose a job that is near their home, much less one that lets them telecommute. They would be happy to get a job anywhere, even one that requires a 1-2 hour commute, which in the automobile-oriented state of California, wouldn't be uncommon.

In addition, suburban spread necessitates the use of a vehicle even just to make your weekly runs to the grocery, hardware, or to the mall. The integration of the automobile into daily life in the suburbs has been around for decades that it will take a disruptive paradigm shift to successfully wean people from it.

Until someone is able to develop such model, hybrids appear to be a good compromise start. And tax incentives help kick start hybrids, since as products in their initial phase of their life cycles, their pricing tend to include R&D costs. The hope, obviously, is that as volume ramps up, acquisition cost will decrease. In the interim, hybrid owners not only save on fuel, they also generate less pollution while using their cars.

There is also something intangible about owning a hybrid. From my observation, my siblings and other Prius owners appear to be more health-conscious, more concerned about their respective carbon footprints. Going green seems to extend beyond just driving a hybrid car. There is a remarked change in lifestyle.

Obviously not all hybrid owners experience such epiphany. But for every one that does, it means a reduction in carbon footprint for yet another person.