Objective functions for plug-in hybrid electric vehicle battery range optimization and possible effects on the vehicle fleet

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 policies to promote PHEVs, both the short- and long-term policy objectives and their potential effects need to be considered explicitly.