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Published by: Asia Case Research Centre, The University of Hong Kong
Published in: 2005

Abstract

This case studies a Hong Kong government environmental mandate to replace the territory''s diesel-powered taxicab fleet with liquefied petroleum gas (LPG) 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.
Location:
Other setting(s):
2006

About

Abstract

This case studies a Hong Kong government environmental mandate to replace the territory''s diesel-powered taxicab fleet with liquefied petroleum gas (LPG) 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.

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Location:
Other setting(s):
2006

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