Study: Plug-in hybrid impact minimal for decades

Not for the masses

A new study by the US National Research Council finds that plug-in hybrid costs are likely to remain high for decades, therefore, PHEV impact on foreign oil dependency and CO2 emissions is likely to remain low until after 2030.

By 2030, the council expects about 13, but up to 40, million plug-in hybrid cars to be on US roads, dependent upon numerous factors. However, in a fleet of 300 million vehicles, impact upon reducing CO2 emissions and foreign oil dependency before 2030 will be minor. Even to achieve the 13 million mark, 10s of billions in subsidies, minimally, will be required. To hit the higher mark, hundreds of billions will probably be needed.

Overall, the council expects production costs of plug-in hybrid vehicles - mostly in relation to battery technologies - to decrease by about 1/3 over the next decade. Thereafter, cost-savings will probably slow. Thus, it will take decades of cheap electricity to recover the upfront costs of plug-in hybrids compared to gasoline vehicles according to the Council - which will severely impact plug-in hybrid adoption.