New York City and San Francisco have adopted new policies to replace their existing taxi fleet with new green taxis. In New York, the "yellow" cabs are going to be completely replaced by hybrids by by 2012. The new standards will be phased in over a four-year period and will reduce the carbon emissions of New York City's taxicab and for-hire vehicle fleet by 50% during the next decade, and will also save individual operators an average of $10,000 a year in fuel costs.

San Francisco is following suit by passing new legislation that will make the entire fleet of cabs "green" by 2011. Currently, about 15% of the city's cabs are either hybrids or run on compressed natural gas.
The impact of these changes are dramatic on several fronts. First, the resulting decrease in CO2 emissions is quite significant. Second, the demand for hybrid cabs will likely help improve the overall economics of producing hybrids by increasing production volume and this may end up decreasing the costs of bringing on new technologies such as lithium ion batteries. Finally, for the residents of large cities like NYC and San Francisco, there will be less ground level pollution resulting from idling cabs.
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