We compare the potential of hybrid, extended-range plug-in hybrid, and battery electric vehicles to reduce lifetime cost and life cycle greenhouse gas emissions under various scenarios and simulated driving conditions. We find that driving conditions affect economic and environmental benefits of electrified vehicles substantially: Under the urban NYC driving cycle, hybrid and plug-in vehicles can cut life cycle emissions by 60% and reduce costs up to 20% relative to conventional vehicles (CVs). In contrast, under highway test conditions (HWFET) electrified vehicles offer marginal emissions reductions at higher costs. NYC conditions with frequent stops triple life cycle emissions and increase costs of conventional vehicles by 30%, while aggressive driving (US06) reduces the all-electric range of plug-in vehicles by up to 45% compared to milder test cycles (like HWFET). Vehicle window stickers, fuel economy standards, and life cycle studies using average lab-test vehicle efficiency estimates are therefore incomplete: (1) driver heterogeneity matters, and efforts to encourage adoption of hybrid and plug-in vehicles will have greater impact if targeted to urban drivers vs. highway drivers; and (2) electrified vehicles perform better on some drive cycles than others, so non-representative tests can bias consumer perception and regulation of alternative technologies. We discuss policy implications. (C) 2013 Elsevier Ltd. All rights reserved.