Following legislative initiatives from California, Canada’s Minister of Transport, Infrastructure and Communities has committed the federal government to regulate the fuel consumption of new cars and light trucks, beginning with the 2011 model year. According to a news release on Transport Canada’s website, the government wants to make good on its commitment to implement, by this deadline, regulations whose standards are, in the Minister’s words, “benchmarked against a stringent, dominant North American standard. . . . Our government recognizes that the transportation sector is one of the largest sources of greenhouse gas and air pollutant emissions in Canada, accounting for 25 percent of all Canada’s GHG emissions. . . .” Industry has lobbied government to reject California-style regulation, saying that such regulation could cause damage to both the auto industry and the economy at large. Environmental research groups suggest that manufacturers are merely exaggerating their projected costs. What is the role of government in regulating industry and protecting the environment, particularly when doing so drives up the cost of the product?