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This study analyzes how, in a possible electrification of the car fleet through plug-in hybrid electric vehicles (PHEV), the choice of objective function, which potentially reflects different stakeholders’ interests, may influence the resulting optimal PHEV battery range, the PHEV share in the vehicle fleet, the fleet total cost of ownership (TCO) savings, and the fleet electric drive fraction under various economic conditions and policy options.

The optimal battery range can differ considerably among objective functions, especially between the objectives of maximizing the number of PHEVs and maximizing driving on electricity. Increased viability of the PHEV, for instance, through lower battery costs, higher running cost savings, or PHEV-promoting subsidies, will strengthen this effect. Therefore, a high share of viable PHEVs in the vehicle fleet does not necessarily result in a high share of electric driving. When designing …