This thesis will examine the validity of the benefits of the Hybrid-Electric Vehicle (HEV). With the recent focus on energy initiatives, reflected through Bush's state of the union, as well as President Hockfield's MIT Energy Initiative, we are heavily investing resources to tackle the energy consumption problem. The HEV is widely touted as the apparent answer to the global environmental concerns as a substitute to the conventional vehicle that can lower fuel usage and toxic emissions. We explore this environmentally responsible claim through four spectrums of interest: the consumer, the automaker, the government, and the environmentalist. After determining the different parameters that affect HEV integration, we can do a more thorough analysis of energy and cost consumption through the whole vehicle lifecycle, through the process of production, use, and disposal in a comparative study with other alternative fuel vehicles. We conclude with a policy recommendation to integrating HEV vehicles as a sustainable industry and how it fits into the picture for the future of the transportation industry.