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Development of natural gas vehicles in China: An assessment of enabling factors and barriers

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  • Wang, Hongxia
  • Fang, Hong
  • Yu, Xueying
  • Wang, Ke

Abstract

Replacing conventional gasoline or diesel vehicles with natural gas vehicles (NGVs) is necessary if China hopes to significantly reduce its greenhouse gas emissions in the short term. Based on city-level data, this paper analyzes the enabling factors and barriers to China's NGV development. We find that a shortage in natural gas supply and a relatively high price ratio of natural gas compared to gasoline are the main factors impeding China's NGV development. Imbalanced development between natural gas refueling stations and NGVs also hinder the popularity of these lower-carbon vehicles. While various policies have been implemented in recent years to promote NGVs in China, only those encouraging adoption of NGVs by the private sector appear effective. To promote further NGV development in China, the following strategies are proposed: (1) improve natural gas delivery infrastructure across the country; (2) reasonably reduce the relative price of natural gas compared to gasoline; (3) give priority to middle-income and medium-sized cities and towns, since siting natural gas refueling stations is easier in these areas; and (4) promote the use of NGVs in the private sector.

Suggested Citation

  • Wang, Hongxia & Fang, Hong & Yu, Xueying & Wang, Ke, 2015. "Development of natural gas vehicles in China: An assessment of enabling factors and barriers," Energy Policy, Elsevier, vol. 85(C), pages 80-93.
  • Handle: RePEc:eee:enepol:v:85:y:2015:i:c:p:80-93
    DOI: 10.1016/j.enpol.2015.05.012
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    Cited by:

    1. Zhang, Yi & Ji, Qiang & Fan, Ying, 2018. "The price and income elasticity of China's natural gas demand: A multi-sectoral perspective," Energy Policy, Elsevier, vol. 113(C), pages 332-341.
    2. Pfoser, Sarah & Schauer, Oliver & Costa, Yasel, 2018. "Acceptance of LNG as an alternative fuel: Determinants and policy implications," Energy Policy, Elsevier, vol. 120(C), pages 259-267.
    3. Shangfeng Han & Baosheng Zhang & Xiaoyang Sun & Song Han & Mikael Höök, 2017. "China’s Energy Transition in the Power and Transport Sectors from a Substitution Perspective," Energies, MDPI, Open Access Journal, vol. 10(5), pages 1-25, April.
    4. Girma T. Chala & Abd Rashid Abd Aziz & Ftwi Y. Hagos, 2018. "Natural Gas Engine Technologies: Challenges and Energy Sustainability Issue," Energies, MDPI, Open Access Journal, vol. 11(11), pages 1-44, October.
    5. Jose J. Soto & Victor Cantillo & Julian Arellana, 2018. "Incentivizing alternative fuel vehicles: the influence of transport policies, attitudes and perceptions," Transportation, Springer, vol. 45(6), pages 1721-1753, November.
    6. Li, Chengjiang & Negnevitsky, Michael & Wang, Xiaolin & Yue, Wen Long & Zou, Xin, 2019. "Multi-criteria analysis of policies for implementing clean energy vehicles in China," Energy Policy, Elsevier, vol. 129(C), pages 826-840.
    7. Imran Khan, Muhammad, 2017. "Policy options for the sustainable development of natural gas as transportation fuel," Energy Policy, Elsevier, vol. 110(C), pages 126-136.
    8. Wenyang Huang & Huiwen Wang & Yigang Wei, 2018. "Endogenous or Exogenous? Examining Trans-Boundary Air Pollution by Using the Air Quality Index (AQI): A Case Study of 30 Provinces and Autonomous Regions in China," Sustainability, MDPI, Open Access Journal, vol. 10(11), pages 1-20, November.
    9. Hao, Han & Liu, Zongwei & Zhao, Fuquan & Li, Weiqi, 2016. "Natural gas as vehicle fuel in China: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 521-533.

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