Customers’ selections between premium electric taxis and liquefied petroleum gas taxis

Reducing roadside emissions is a common challenge in metropolitan cities. In Hong Kong, conventional liquefied petroleum gas taxis are one of the main contributors to roadside emissions as they operate on the streets 24 h a day with a long daily driving mileage. Moreover, these taxis suffer from a severely poor service reputation. To enhance the environmental friendliness and service quality of the taxi industry, this study explores the market potential of operating premium electric taxis in the dispatching mode. A stated preference survey was conducted to 1410 taxi customers about their taxi-riding choices between premium electric taxis and conventional liquefied petroleum gas taxis. In total, 5640 observations were obtained and used to develop a series of binary logistic regression models with different model formulations for the determination of the significant factors influencing customers’ selections. The findings indicate that walk time to and wait time for taxis were the most critical concerns to the customers, and they were more willing to take premium taxis if their journey distance was longer and their desired improvement on taxi service quality was greater. The socio-demographic status of taxi customers also influences their choices. The associated policy implications are discussed for promoting taxis with better service quality and fewer roadside emissions. The findings provide some policy insights to other international cities that have a similar taxi market to Hong Kong.