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Safety Regulation and the Rise of Towngas in Hong Kong                                                                                                                                                                                      
Product Ref: 04/196C Company: N/A

Product Type: Case Industry: Energy

Related Product(s): Teaching Note
Authors: Ka-Fu Wong   Richard Wong   Andrew Lee
Kerosene, liquefied petroleum gas (LPG), and towngas were the three major forms of heating fuels used in Hong Kong before 1980. Numerous accidents caused by the use of LPG that occurred in the years preceding 1981 prompted the government to commission a study on the safety aspects of gas, which resulted in strict regulations on LPG supply. Some argued that safety regulation gave towngas unfair advantage over LPG and hence gave rise to towngas's dominant position by the 1990s. But the Government felt that there was sufficient competition and therefore no need for any form of government intervention.
Functional Area : Economics & Business Policy

Issues: Competition, government regulation and intervention, natural monopoly, market contestability
Length: 17 pages Country: Hong Kong SAR

Pub. Year: 2004 Level of Difficulty: 2
This product type is available in the following language(s):      English   Simplified Chinese
Related Information: N/A
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