Hybrid Cars Offer America a Greener and Cheaper Road Forward

In the aftermath of sweeping budget “One Big Beautiful Bill Act” negotiations, it is becoming almost certain that the GOP aims to press Congress to eliminate federal tax credits on electric vehicles (EV), reigniting new debates about America’s future clean transportation strategy. In fact, rather than framing the policy choice of the United States as an all-or-nothing leap toward fully electric vehicles, hybrid electric vehicle (HEV)—which combines an internal combustion engine with an electric motor to simultaneously improve fuel efficiency and reduce emissions—actually present a more pragmatic and effective middle path toward a more sustainable future in many aspects. Beyond delivering immediate reductions in greenhouse gas emissions and improving energy efficiency, HEV provides the American automobile industry a more feasible pathway towards sustainability, both environmentally and economically, without requiring massive new infrastructure or perpetual government subsidies while still preserving the potential for greater levels of electrification in the future. Given the current political and fiscal realities of the United States, HEV deserves more consideration as a central pillar in America’s future climate and industrial strategy.

Although HEV still partially relies on fossil fuels, it already delivers measurable reductions in emission. Researchers found that HEV can reduce average fuel consumption by 39.3% on freeways and expressways and by 58.0% on arterial roads compared to its conventional counterpart. These improvements nearly doubles fuel efficiency of HEV, equating to roughly 2 fewer tons of gasoline per car per year—a compelling difference that prompts American families to seriously consider choosing a hybrid over a traditional gasoline car. Currently, automobiles account for roughly 20% of total greenhouse gas emissions in the United States. Besides economic benefits, a shift toward hybrid electric vehicles would also reduce vehicle-level CO₂ and nitrogen oxide (NOₓ) emissions by 33% and 61%, respectively—already a meaningful step toward cleaner transportation. Crucially, these gains are achieved without requiring regular American drivers to alter their behavior or make additional expenditures.

These savings stem not only from the additional electric motor but also features distinctive to EV and HEV, such as regenerative braking, idle start-stop systems, and higher energy efficiency. Regenerative braking alone can recover up to 60-70% of the kinetic energy typically lost during deceleration. When sitting in traffic, HEV is also capable of shutting the engine off at idle to reduce fuel burn and emissions while still operating normally. Moreover, these technologies are common to both EVs and HEVs. While the latter offers a more practical and immediately scalable solution given the current limitations in the U.S. market, investing in HEV adoption also helps build the technical foundation for a more fully electrified future—if and when EVs become more viable at scale.

In terms of overall energy efficiency, given that renewables currently account for only about 21% of U.S. electricity generation, the electricity currently used in HEV still primarily comes from fossil fuel–based power plants. However, even when grid electricity is sourced from coal or oil, HEVs benefit from the higher thermal efficiency of centralized power plants compared to internal combustion engines. Conventional gasoline vehicles operate at an average energy efficiency of around 20.5%, whereas power plants—even those in regions with the lowest performance—typically achieve efficiencies above 36%. This difference means that HEVs can cut the fuel cost and greenhouse gas emission almost in half when traveling that same distance. In areas with better grid management, that efficiency advantage can be even more dramatic—up to a fourfold improvement.

This gradual shift toward electrification also brings a less discussed but deeply impactful benefit: it creates durable, market-driven demand for electricity. Unlike temporary demand spikes triggered by subsidies, HEVs reflect real consumer motivation—each hybrid vehicle saves nearly two tons of gasoline per year, which are tangible economic relief and emissions reduction driven by performance rather than policy incentives. As a result, new power generation and grid infrastructure will likely receive stronger investment, which not only supports economic growth across sectors—such as construction, raw material supply chains, and energy equipment manufacturing—but also expands the share of renewable sources, even if renewables make up only part of the additional capacity. More importantly, this evolution lays the foundation for a more resilient and electrified transportation system. The feedback loop is clear: more HEVs lead to more electric miles, which encourage more power infrastructure, which in turn supports deeper electrification—including the eventual feasibility of full EVs. 

Indeed, as mentioned before, job redistribution that merely shifts workers from one sector to another without generating new value should be avoided. At first glance, the rise of HEVs might appear to threaten the livelihoods tied to traditional combustion-engine manufacturing. However, this shift is not about dismantling one sector to prop up another—it is about genuine innovation. Improving energy efficiency, reducing emissions, and creating new technical capabilities are not redistributive moves—they are forward-looking transformations. Resisting such progress in the name of short-term employment stability risks missing the broader opportunity. HEV is not only a solution but also a key to a wide range of meaningful, future-oriented reforms for the automobile industry of the next generation.

In the long run, HEV offers a vital model for decarbonization by accelerating battery innovation and enabling broader emission reduction across vehicle types. One of the key reasons the U.S. cannot yet fully embrace EV is its comparative weakness in high-performance battery technologies. HEV provides a practical platform for automakers to enhance their battery systems gradually—starting with modest capacities and moving toward advanced chemistries such as sodium-ion. These incremental improvements are not just industrial milestones; they are climate enablers, allowing more efficient energy through deeper electrification. At the same time, HEVs offer a scalable model for decarbonizing heavy-duty vehicles and public fleets, which together account for roughly one-third of total vehicle-related emissions. Lessons learned from hybrid passenger cars—including energy recovery, fuel optimization, and dual-power system design—can be directly transferred to larger platforms such as buses and trucks. In this way, HEVs are not a detour from climate goals, but a stepping stone toward decarbonizing the broader transportation system.

Across all these functions, HEV does not represent a fallback or resistance to electrification but rather a forward-looking step toward it. They deliver immediate emission reductions, lower fuel consumption, and reduce fossil fuel reliance—all while fitting the existing contours of America’s geographic and industrial landscape. Crucially, they support the gradual development of technologies—batteries, electric components, and grid integration—that will define the next era of transportation. In short, they reflect a hybrid mindset in more than just engineering: pairing realism with ambition, transition with transformation.

In fact, China already has meaningful experience with HEV that could offer an instructive example for the U.S. In recent years, sales of HEV in China have grown faster than those of full battery EVs, reflecting a consumer preference for incremental, reliable solutions that reduce fuel use without requiring full electrification upfront. This suggests that hybrid technologies can serve as a practical bridge for countries aiming to achieve cleaner and more affordable transportation through electrification. As the U.S. reconsiders its own path forward, it can draw lessons from China’s pragmatic approach. At the same time, Chinese policymakers should also be cautious about shifting their emphasis solely to EVs and allowing HEVs to be governed entirely by market forces. Moreover, given HEV’s proven benefits, it remains a valuable tool not only for China and the U.S., but also for countries like Japan, South Korea, and Germany—each of which has a robust auto industry and potential in renewable energy that could support a hybrid-centered transition strategy.

As Congress revisits major climate and tax legislation, including reforms to the Inflation Reduction Act and likely renewals of the Tax Cuts and Jobs Act, the question should not be whether to support clean vehicles, but how to support the ones that deliver meaningful and scalable results. HEV deserves recognition—not as a half-measure, but as a strategic asset in today’s economic and environmental landscape of the U.S. They cut emissions in the near term, enable industrial innovation, and extend the reach of limited public dollars through market-based growth. Supporting HEV would not only strengthen climate outcomes—it would reinforce the pro-growth principles of the TCJA by leveraging stronger initiative to meet long-term national goals. In a moment demanding both fiscal discipline and climate leadership, hybrid vehicles may well be the most sensible and sustainable way to drive America forward.