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Good point about regulatory issues. I've been thinking a lot about working on standards committees and whatnot as they actually have influence and many standards/regulations/codes are bad.
Using waste streams is one of the more basic efficiency engineering approaches, and at this point I think if large gains were to be had from those, we'd have them already.
As for condensing CO2, there are tons of ideas along those lines, but I'm not sure carbon capture is worthwhile. I'd need to see more economic analysis of those ideas, or better yet, test implementations. That's more or less my point. There are a ton of ideas, many of which could work technologically, but which would work economically/socially/etc. as well?
Let's go back to biological systems. Even assuming that most people driving is a good idea (I don't assume this), cars are somewhat irrational for that purpose. You can cut down drag (and consequently increase efficiency) a lot with relatively basic (and well known) modifications, e.g., boat tailing. It seems to me that cars aren't built that way in the first place because even though people say they want fuel economy, etc., cars built that way won't sell.
There used to be a really interesting interview along those lines with Bob Lutz (a well known car company executive) here, but it seems to have since gone offline. Here's what I have quoted in my notes: