Consumption effects of an electricity decarbonization policy: Hong Kong

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This paper estimates the consumption effects of an electricity decarbonization policy’s implementation. For Hong Kong, these effects are decreases in electricity consumption and increases in town gas consumption. Using a sample of monthly data for the period of 1981-2016, we document the low price responsiveness of Hong Kong’s electricity and town gas demands by customer class (residential, commercial and industrial). Hence, the 40% projected electricity rate increase due to Hong Kong’s adopted electricity decarbonization policy may only have a small demand-side impact on CO₂ emissions. Finally, the electricity demands’ low price responsiveness implies: (1) Hong Kong’s demand-side-management should mainly rely on energy-efficiency improvements; and (2) restructuring Hong Kong’s electricity industry should consider the potential for market power abuse aided by price-inelastic electricity demands. Copyright © 2018 EEAA/IEEE/EE One-Day Forum.
Original languageEnglish
Publication statusPublished - Apr 2018


Woo, C. K. (2018, April). Consumption effects of an electricity decarbonization policy: Hong Kong. Paper presented at the EEAA/IEEE/EE One-Day Forum 2018: Smart Technology and Energy Strategy for Hong Kong’s Electricity Supply Industry Towards 2033, The Hong Kong Polytechnic University, Hong Kong, China.


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