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A Cost for Cleaner Air: Hong Kong's LPG Vehicle Scheme                                                                                                                                                                                      
Product Ref: 06/295C Company: N/A

Product Type: Case Industry: Energy
Public Policy & Strategy

Related Product(s): Teaching Note
This case studies a Hong Kong government environmental mandate to replace the territory's diesel-powered taxicab fleet with liquefied petroleum gas powered vehicles. In order to encourage the transition, taxi owners were given cash grants to purchase new LPG vehicles and drivers were promised "cheap" fuel. In exchange for selling at or below capped prices, certain companies received "free" land to develop dedicated LPG filling stations. Other local filling stations sold LPG fuel alongside gasoline and diesel, though at market prices. All stations in the territory were supplied by fuel imported from abroad.
Functional Area : Economics & Business Policy

Issues: Price Control, Subsidy, Oil and Gas, LPG, Liquefied Petroleum Gas, Alternative Fuel, Filling Station, Economic Regulation, Price Controls and Subsidies
Length: Text: 7 pages
Exhibits: 9 pages
Country: China (People's Rep. of)
Hong Kong SAR

Pub. Year: 2006 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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