Impact of High Occupancy Vehicle (HOV) Lane Incentives for Hybrids in Virginia

This paper examines the impact of Virginia’s policy of exempting hybrid-electric vehicles from minimum occupancy requirements on state HOV lanes. Virginia registration statistics are used to compile hybrid market shares on a county level to compare the impact of HOV lane access to other socioeconomic variables. The HOV incentive is shown to have a significant impact in Northern Virginia, but not in the Hampton Roads area. The paper also addresses the criticisms and potential unintended consequences of the incentive policy, including whether it has impacted the “green” image of the hybrid in Virginia.