This paper presents a cost-benefit analysis of hybrid and electric city buses in fleet operation. The analysis is founded on an energy consumption analysis, which is carried out on the basis of extensive simulations in different bus routes. A conventional diesel city bus is used as a reference for the Cost Benefit Analysis. Five different full size hybrid and electric city bus configurations were considered in this study; two parallel and two series hybrid buses, and one electric city bus. Overall, the simulation results indicate that plug-in hybrid and electric city buses have the best potential to reduce energy consumption and emissions. The capital and energy storage system costs of city buses are the most critical factors for
improving the cost-efficiency of these alternative city bus configurations. Furthermore, the operation schedule and route planning are important to take into account when selecting
hybrid and electric city buses for fleet operation.