No, its not pollution free. We have to generate it somehow. But even a coal plant is more efficient than a IC engine at converting fuel to energy. The average IC engine is only 25% efficient, 3/4 of the energy produced is wasted as heat. Its one of the reasons I am Pro forced induction, even in a passenger car designed to do nothing but get groceries. The average n/a has a volumetric efficiency of about 80 to 90%. But a forced induction engine can easily achieve 100% and as high as 120%. If turbo's had no lag they would be the ultimate technology for a car. Anti-lag systems don't count though, they are extremely tough on the exhaust system.
Solar panels on every house, Renewable power and Nuclear could solve the generation problem. Also if everybody worked, socialised, sent kids to local schools and shopped locally could reduce the power needed for transportation. Most of the worlds power infrastructure is well over due for being upgraded already due to our unsustainable desire to have more than 2 kids.