Abstract:

The transportation sector is the largest contributor to greenhouse gas (GHG) emissions, and electric and hybrid vehicles (EHVs) are among many solutions that can help reduce the consumption of fossil fuels and their resulting GHG emissions. This study addresses the significant and understudied question of how EHVs’ adoption influences CO2 emissions using panel U.S. state-level data over the 2016-2019 period and fixed effects. The study finds no statistically significant relationship between the adoption of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and plug-in electric vehicles (PEVs) and CO2 emissions. These findings could be explained by adoption rates of HEVs and PHEVs that are too low to manifest statistically significant reductions in CO2 emissions from the potential displacement of internal-combustion engine vehicles (ICEVs). The study suggests that PEVs are often used as supplementary vehicles by multi-vehicle households in the U.S., despite being emission-free. The study underscores the need for further research on EHVs' role in sustainable transportation, adoption patterns, policy interventions, and environmental implications.