Cost-effectiveness of plug-in hybrid electric vehicle battery capacity and charging infrastructure investment for reducing US gasoline consumption

► We compare cost of PHEV batteries vs. charging infrastructure per gallon of gasoline saved. ► The lowest cost solution is to switch more drivers to low-capacity PHEVs and HEVs. ► If more gasoline savings is needed, batteries offer a better value than chargers. ► Extra batteries & chargers are both more costly per gal than oil premium estimates. ► Current subsidies are misaligned with fuel savings. We discuss alternatives.