Personally I believe so. The only alternative I see is to impose a serious pollution tax. BTW I like the tax better. Maybe it can reduce the national debt that the current war is loading onto the backs or our children and grand children.
I don't believe the market place is functional here. You do not have a truly free competitive market. There are too few players and the customers don't bear the cost of pollution nor the cost of things like wars to get and protect oil supplies, rather the suffer those cost but their choice of cars as it is not related to how much of it they pay.