Abstract
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 language | English |
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| Publication status | Published - Apr 2018 |
| Event | 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 Duration: 28 Apr 2018 → 28 Apr 2018 |
Seminar
| Seminar | EEAA/IEEE/EE One-Day Forum 2018: Smart Technology and Energy Strategy for Hong Kong’s Electricity Supply Industry Towards 2033 |
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| Country/Territory | Hong Kong |
| Period | 28/04/18 → 28/04/18 |
