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Saturday, June 7, 2025

Hybrid (HEV) vs. Plug-in Hybrid (PHEV) vs. Battery Electric (BEV): Cost, Incentives, and Emissions Comparisons

     Having owned two hybrids and one plug-in hybrid (PHEV) over the years, I have enjoyed the advantages in cost of ownership. These include superior gas mileage, fewer trips to the gas station (depending on fuel tank size), and, for plug-ins, the ability to charge up at home. I am currently driving a 2010 Honda Insight hybrid that gets 43MPG. It dropped over the last year from 46.5MPG, which made me think the 15-year-old battery was degrading, but I am guessing I just lost a cell, as the loss of mileage was steady over a few months, then just stopped. It has remained steady for more than a few months now.  I know I will have to replace the battery at some point and will likely do so as long as the mileage is not very high. Currently, it is about 119,000 miles.

     There are some disincentives to owning these vehicles as well. When I bought my recent hybrid and went to get it registered at the BMV, I was charged $100 due to being a hybrid. This is presumably to pay for those things that gasoline and diesel taxes pay for, like road repairs, etc. Many states have these charges that claw back a little of the loss in tax revenue.

     According to the Energy Information Administration, hybrids, PHEVs, and BEVs make up 22% of U.S. light-duty vehicle sales. Of those, hybrids make up 12%, PHEVs make up 2%, and EVs make up about 8%. They also note that battery EVs make up a large part of what is called the luxury market.







Battery electric vehicle sales in particular are more common in the luxury vehicle market. U.S. luxury vehicles accounted for 14% of the total light-duty vehicle market in the first quarter of the year, the lowest share since mid-2020. Electric vehicles accounted for 23% of total luxury sales in the first quarter of 2025. Electric vehicles had accounted for more than one-third of luxury sales in 2023 and 2024 before Wards reclassified the Tesla Model 3 as non-luxury in late 2024.”

Battery EVs also cost up to 25% more. Of course, who can afford a new car these days?! I bought a new PHEV in 2019 for $30,000. Unfortunately, a year later, I hit a deer and totaled it. A few days later I got laid off. I don’t foresee ever buying a new vehicle again, probably only used ones for the rest of my days.

Battery electric vehicles’ average transaction prices remain persistently higher than the overall market: the average transaction prices increased from $55,500 in December 2024 to $59,200 in March 2025, compared with the average price of all new vehicles, which decreased from $49,700 to $47,500. This 25% difference between battery electric vehicles and the industry average prices in March 2025 was the highest in any month since April 2023.”

 

HEVs, PHEVs, and BEVs: Emissions Differences Are Dependent on Several Factors

     Kumar Venkat, in an August 2023 article in Illuminem, explores and compares emissions. He first notes Toyota’s claim that the critical minerals used for one BEV can be used for six PHEVs or 90 hybrids. He notes that critical minerals may become constrained in the future and that their supply chains are often powered by fossil fuels. Add to that the fact that the grids BEVs and PHEVs plug into may be powered largely by fossil fuels. These differences in power sources for the minerals supply chain and tapped grids make determining emissions more variable and difficult. The use of life cycle assessments (LCAs) for determining emissions is how they are estimated. Venkat did LCA analysis based on the California grid and an average for Midwestern grids, which are shown in the graphs below. His conclusions are that right now in these places, PHEVs have lower emissions intensity than BEVs. In the future, when minerals supply chains are cleaner and grid energy is cleaner, that will likely change, but there are still some “ifs” in there. HEVs come in slightly higher than BEVs, but ICE vehicles are 30% higher than HEVs.















     The key points are that, right now, PHEVs and HEVs are very good for low emissions, at costs that are much lower than BEVs. They are also much more convenient because they don’t solely rely on charger availability. Things will change in the future as battery chemistries change, as EV ranges improve, and as chargers become more available. I would say that the hurried rollout of BEVs and chargers was premature. When I had a PHEV, I also installed a Level 2 charger at my house. I was able to dig the trench and bury the conduit myself in order to save a ton of money. The electrician ran the wire through and hooked everything up. It was great. In the future, I will look to buy affordable used HEVs or PHEVs.

     Venkat’s conclusion is that PHEVs are a logical intermediate technology:

While the electrification of personal transport is necessary to get to net zero emissions by 2050, we could easily make the transition much harder by racing towards 100% electrification before we have sufficiently expanded, diversified, and cleaned up the mineral supply chains. A lifecycle perspective of transport solutions would suggest that electrification should be done in alignment with projected improvements in battery production as well as clean power generation. PHEVs are a logical intermediate technology in this transition that can deliver better climate benefits today while using critical resources more efficiently.”

    


 

References:

 

Hybrid vehicle sales continue to rise as electric and plug-in vehicle shares remain flat. U.S. Energy Information Administration. May 30, 2025. Hybrid vehicle sales continue to rise as electric and plug-in vehicle shares remain flat - U.S. Energy Information Administration (EIA)

Why plug-in hybrids (PEVs) are better for the climate than full Electric Vehicles (BEVs) today. Illuminem. Kumar Venkat. August 7, 2023. Why plug-in hybrids (PEVs) are better for the climate than full Electric Vehicles (BEVs) today | illuminem

 

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