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I think it's brilliant that Israel has mandated the use of hybrid vehicles, http://samsonblinded.org/news/tender-corruption-toyota-against-honda-8259 in spite of the conflict it's causing.
That article has nothing to do with Isreal mandating hybrid vehicles.
IMO, a wiser choice would be to mandate certain efficiency goals and let the companies decide how to get there. Regulation is always more effective if it simply gives business a goal and lets them reach it as they see fit instead of saying "this is what you need to do to get to this point."