Electric vehicles in Hong Kong

The 2014 Hong Kong Emission Inventory Report indicates that the road transport sector is the largest local air pollution source, especially 60% of carbon monoxide emission comes from transportation.[3] Through replacing burning gasoline with using electricity among the EVs, the roadside air quality is improved after reducing carbon emissions from exhausted gases. Besides minimising various pollution problems and lowering the risk of respiratory illnesses, noises and vibrations are also eliminated when no chemical combustion is involved as in the traditional engines.[4][5] Under the assumption of annual mileage as 20,000 km and consideration over the emissions from generations, the estimated carbon dioxide emitted is around 1,880 kg, 33% and 47% less than that of the hybrid cars and the petrol vehicles respectively.[6] The ultimate objective of the Government is to have zero emission buses running across the territory. To this end, the Government allocated $180 million for franchised bus companies to purchase 36 single-deck electric buses, include 28 battery-electric buses and 8 supercapacitor buses, for trial runs to assess their operational efficiency and performance under the local conditions. 18 battery-electric buses and 2 supercapacitor buses have commenced operation. Most of the remaining electric buses are expected to be put into service progressively in later 2017 or early next year.

EVs have a higher energy efficiency than traditional petrol vehicles, allowing an 80% conversion of input energy into usable power, as a 15%-20% improvement than the latter. With technological advancements, EVs have higher battery capacity that allows 100 km travelling distance after a single charge, far higher than the original 40 km at the early development. By comparing EVs with petrol vehicles over the energy cost, the price of the latter is around 13.6 times higher in the case from Tuen Mun to Mong Kok (30 km; HKD4.7:HKD36.7).[7] The 2011-12 Financial Budget highlighted the value brought by the green development has increased by 12.4% with the 3.6% surge of employees.[8] With the recent emphasis on green economy and smart city in the 2015-16 Financial Budget, the Government believes that the high cost- effectiveness of EVs allows further creation of business and employment opportunities like the complementary accessories of EVs and R&D for further scientific innovations in the ever-expanding market.[9]

Giving economic incentives is regarded as a favourable policy that encourages the use of EVs as it lowers the costs. Exemption of the first registration tax on EVs was first introduced in 1997 to promote the use of greener vehicles.[17] The Financial Secretary extended the waiver of the first registration tax on purchasing EVs in 2009 Budget until the end of March 2017.[18] Moreover, enterprises purchasing EVs will enjoy another tax deduction, which is a full “profits tax reduction for the capital expenditure on the EVs in the first year of procurement”.[3]

To encourage the public transport sector to use EVs, the government offers the industry some financial assistance programs, for example, “Pilot Green Transport Fund”[19](See the above section). Such a fund targets public transport service providers and attracts them to use innovative and green technologies for trial.[3] Furthermore, other financial assistances are put in place like the one-off grant to PLB owners and the allocation of $180 million HKD for franchised bus runners to purchase electric buses. The former aims to upgrade PLB emission standard to that of EV[17] while the latter serves to test the use of EVs and promote the use of EVs among the community.[3]

With regard to the insufficient charging facilities and immature charging technologies, not only does the government devote to increasing the number of charging sockets while some of them are free,[1][6] but also to collaborate with EV manufacturing firms for the advancement of charging facilities.[2][3] Apart from infrastructure support, the government also issues a set of guidelines on the safe use of EV chargers and provides hotline service for information and technical support.[20]

The government takes the lead to use EVs by giving priority to replace government vehicles with EVs. It is estimated that over 200 government vehicles are EVs.[21] Not only does the government take the lead to use EVs, it also helps organize an event that arouses the public interest to use EVs, namely the “FIA Formula E Championship”.[22] It is found that the government is determined to provide comprehensive support, ranging from introducing preferential policies to holding promotional activity, in an effort to promote the use of EV in Hong Kong.

As at April 2016, there are 1320 public chargers in Hong Kong, distributed unequally in different territories, for example, there are nearly 500 public chargers in Hong Kong Island, whereas only less than 400 are located in New Territories and Island Districts, which cover the most area of Hong Kong (see Diagram 1 below). Therefore, the insufficiency of chargers in rural areas is a great concern to some EV drivers.[23] Some drivers opined that it is not ideal to rely on public chargers, in particular when one could hardly find a parking space in Hong Kong.[24] Some even complained that the public parking space for EVs are often occupied by non-EVs.[23]

Another criticism is the formidability for individuals to install chargers in private car parks. The installation of chargers in private buildings has to undergo an array of procedures. According to the guidelines from the government,[20] individual owners of EVs have to consult the owner of the car park space, the dealer of the EV, the property management company and the registered electrical contractor.[25][23] Apart from lowering the feasibility of charging the EV at work and at home, this also hinders the incentive of using EVs in the long run.[24][26]

There are 4 types of charging sockets (UK, Europe, US and Japan) for EV in Hong Kong, inter alia, only the Japanese socket could serve a fast charge (in 20 minutes).[27] However, 76% of the chargers in Hong Kong are slow chargers which takes 5 to 12 hours for an EV to be fully charged.[28][29][27]

Using EV is not necessarily reducing carbon dioxide emission. It depends on the carbon intensity of electricity generation.[30][31][32] Coal is used for over half of the power generation in Hong Kong,[33] and research finds that an EV might emit more carbon dioxide than non-EV over 150000-kilometre lifetime after taking into account the carbon intensity of electricity generation and the subsequent production of car batteries.[30]

The emphasis of Singaporean government's EVs policy is placed on the cooperation with vehicle manufacturers and technology companies. By launching EV test-bed and forming agreement with Chinese companies to introduce EV into their public transportation, the determination of the government to utilize EVs as environmental policy to combat air pollution is clearly shown. However, surprisingly, as opposed to Hong Kong, the most popular EV model in Singapore is not Tesla. One may suggest the biggest obstacles come from the international oil company, which considers Singapore as the hub of oil refinement and trading center, hence acting as the tripping stone for the government to continuously promote the use of EVs.[34]

The British government took initiative and launched “green car revolution” programme introducing EVs into the market. This program included a range of incentives, government support, legislation and education programs, together suggesting by 2020 all new cars sold in the UK should be either hybrid or EVs. Apart from large scale subsidy and tax reduction to enhance incentive in purchasing EVs, the government has launched “Plugged-in-Places” scheme to increase vehicle recharging points and convenience, as well as 100% discount for London Congestion Charge. A comprehensive policy planning encouraged people to switch to EVs, resulting in over 20-folds increase of EVs registration in UK from 2011 to 2015.[35]