tions and costs of PHEV pared toa baseline midsize sedan. Two powertrain technology scenarios are considered to explore the near-term and long-term prospects of PHEVs. The analysis finds that petroleum reductions exceeding 45% per-vehicle can be achieved by PHEVs equipped with 20 mi (32 km) or more of energy storage.However, the long-term incremental costs of these vehicles are projected to exceed US$8,000, with near-term costs being significantly higher. A simple economic analysis is used to show that high petroleum prices and low battery costs are needed to make pelling business case for PHEVs in the absence of other incentives. However, the large petroleum reduction potential of PHEVs provides strong justification for governmental support to accelerate the deployment of PHEV technology.
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