Transportation is a significant contributor to greenhouse gas emissions in the US, accounting for 28% of total emissions in 2022. Electrification is seen as the fastest way to reduce emissions from vehicles and play a crucial role in combating climate change in the coming years. Despite the emissions associated with electricity production, battery electric vehicles (BEVs) have been shown to have significantly lower emissions compared to new gasoline vehicles, equivalent to the emissions of a 100 mpg gasoline car.
The sales of electric vehicles (EVs) have been on the rise, with over 1.2 million annual EV sales in the US since 2023. However, the transition to fully electric vehicles faces challenges in 2026 due to changes in federal regulations and funding cuts that were accelerating the shift from gasoline to electricity. Despite these challenges in the US, globally, EV sales have been increasing, with EVs accounting for over 20% of new car sales in the second half of 2025.
Some automakers in response to the changing landscape in the US are considering a shift from fully electric vehicles to plug-in hybrid electric vehicles (PHEVs). While PHEVs offer the flexibility of using both electricity and gasoline for refueling, there are potential downsides for drivers, automakers, and the environment.
### A Quick Primer: Hybrids, PHEVs, and EREVs
Hybrids are more efficient gasoline-only vehicles that use electric motors to drive the wheels but rely on gasoline for recharging the battery. PHEVs, on the other hand, can operate on electric motors and gasoline engines, offering a balance between electric and gasoline power. Extended-range electric vehicles (EREVs) are a type of PHEV where the electric motor drives the wheels at all times, with the gasoline engine acting as a generator when the battery charge is low.
### What the Data Say About Real-World PHEV Emissions
Studies have shown that current parallel PHEVs in the US may have real-world fuel consumption significantly higher than EPA estimates, mainly due to infrequent charging and powertrains that engage the engine even when the battery is charged. PHEVs, when not regularly charged, have higher emissions per mile compared to BEVs, with emissions almost tripled if not plugged in.
### Current PHEVs Don’t Prepare for an Electric Future
Parallel PHEVs, with their short electric range and reliance on gasoline, do not effectively transition drivers to fully electric vehicles. Additionally, the technology used in PHEVs may not benefit automakers in designing the next generation of electric vehicles.
### EREVs as a More Promising Bridge to Fully Electric Vehicles
EREVs, with larger batteries and the ability to drive solely on electric power, offer a transition to fully electric vehicles with a driving experience similar to BEVs. EREVs are expected to have battery capacities and fast-charging capabilities closer to BEVs, making the transition simpler for both drivers and automakers.
### Policies Need to Account for Real-World Performance
Regulators and government programs should focus on the real-world performance of PHEVs and prioritize EREVs over parallel PHEVs in regulations and incentives. While BEVs offer the most significant emissions reductions, EREVs could serve as a bridge to fully electric vehicles in the short term.
### Bottom Line
While BEVs remain the cleanest option for reducing emissions, options like PHEVs and upcoming EREVs may be suitable for some households, especially those with limited charging options. It is essential to understand the differences between PHEVs and BEVs in terms of performance and emissions to make informed decisions in transitioning to a more sustainable transportation future.
