Vehicle ownership has now become a fundamental part of a person’s asset ownership. Today hybrid cars present an alternate, environmentally friendly way to privately commute while saving the environment. Despite the newness of hybrid technology and its projection as environmentally friendly – the factors resulting in hybrid car ownership are myriad. This study in two parts aims to investigate 1. the influencing factors which determine the intentions of people living in Islamabad to own a hybrid car in future, 2. The environmental benefits accrued from purchasing a hybrid car in monetary terms such as reduction in carbon dioxide emissions and economic benefits such as reduction in fuel prices compared to a non-hybrid car. Using the binary logit model, the perception in terms of social image, ownership, price, environmental concern and seeking environmental knowledge were analyzed. The results indicated mixed responses wherein people did show interest in buying a hybrid car but without exhibiting any pro-environment concern. Thus, environmental concern does not play a primary role in determining purchase intentions to buy a hybrid car. The environmental economic comparison of the hybrid car with its non-hybrid conventional counterpart showed that the environmental benefits accrued from using the hybrid car in terms of emissions reduction and lessened fuel costs do not completely compensate for the high price of the hybrid car in Pakistan. Supervisor: Dr. Rehana Siddiqui