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2 | P a g e This report analyzes the impact of Plug-in Hybrid Electric Vehicles on the oil market and the environment and predicts the success of their implementation in Massachusetts. It describes the oil market and predicts that the introduction of PHEVs will result in savings of six million barrels of oil annually and a 10 % reduction in oil prices after 50 years under ideal conditions. It also addresses the environmental concerns associated with the vehicles and predicts that PHEVs are indeed a green solution in Massachusetts, and will reduce carbon dioxide emissions by up to 22 % after 50 years. System dynamics modeling is used to predict results for a number of scenarios, showing the impact on emissions, PHEV adoption, and average money saved. The scenarios include high oil prices, higher number of miles that a PHEV can run on electric, different charging times, higher battery capacities and different PHEV capital costs. It is also predicted that in Massachusetts, under ideal conditions, the gas car fleet will be completely replaced by PHEVs within 50 years