Hong Kong’s Financial Incentives for Electric Vehicles as a Prerequisite for Promoting Low Carbon Transition

Overviewing the air pollution situation in Hong Kong, energy generation and transportation are part of the contribution to the carbon emissions. Electric vehicles do not have engines and no air pollutants emissions. The promotion of electric vehicles serves as an important strategy to Hong Kong’s goal to achieve carbon neutrality by 2050. This paper illustrated the financial incentives the Hong Kong Government has launched, including First Registration Tax concessions, profits tax deduction, One-for-One Scheme, lower license fee, subsidy support for e-buses and e-taxis, free charging services at government car parks, EV-charging at home Subsidy Scheme, etc. By comparing the cost of purchasing and owning vehicles with the cost of purchasing and owning electric vehicles as well as the market performance of electric vehicles to examine whether the financial incentives in Hong Kong can promote electric vehicles and serve as a prerequisite to low carbon transition. The results show that under government support and promotion associated with preferential policy, electric vehicles will become the future trend in Hong Kong with the advantage of lower emissions, energy saving, and environmental protection.

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