Introducing alternative fuel vehicles in Hong Kong: views from the public light bus industry

Hong Kong was the first place in the world to implement a trial scheme to convert all public light buses (PLBs) on the road from diesel to alternative fuel vehicles (AFVs). The scheme, however, did not receive much support from PLB operators. At present, there is a rich literature on households’ demand for AFVs (especially in the USA). However, there have not been many studies about the demand for commercial AFVs in the business and public transport sectors. Since light buses running on alternative fuels are not widely available in the Hong Kong market, a stated preference (SP) survey was conducted to solicit the preferences of PLB operators on eight commercial vehicle attributes and seven forms of government support. The SP data are analyzed by multinomial logit (MNL) models. Detailed analyses on market segmentation and price elasticities follow. The results are of theoretical and practical significance.