We use micro-level data on fuel consumption, mileage, and travel mode to study plug-in hybrid drivers’ response to fuel prices. When fuel prices rise, plug-in hybrids reduce fuel consumption more than gasoline and diesel cars. They do not reduce their mileage but increase electric recharging,...

This study summarizes some of the most important characteristics of the road transportation industry, and presents a discussion of its performance. The main objective is identifying areas where government action may be needed in order to correct market failures or to remove inadequate...