Introduction of Competition and Environmental Regulation in the Electricity Sector in Hong Kong

36 Pages Posted: 31 Dec 2014 Last revised: 16 Jan 2015

See all articles by Thomas K. Cheng

Thomas K. Cheng

The University of Hong Kong - Faculty of Law

Jolene Lin

National University of Singapore (NUS) - Faculty of Law

Date Written: December 31, 2014

Abstract

This article explores both the competition and the environmental aspects of the electricity sector in Hong Kong, and a possible linkage between them. There has been considerable public pressure to liberalize the electricity sector in Hong Kong due to longstanding discontent with the persistently high profit of the sector and a regulatory structure that is widely perceived to be ineffective. In light of the government’s seeming reluctance to pursue liberalization, this article examines an alternative approach – litigation under the recently adopted Competition Ordinance. It assesses the likelihood of success of the strategy and its potential shortfalls. The article proceeds to analyse whether competition can be used as a tool to improve the environmental performance of the sector. It concludes that the effect of the introduction of competition is ambiguous if not adverse and therefore proactive regulatory intervention will be needed to ensure that environmental performance does not deteriorate following the introduction of competition. Competition will not be an effective tool to improve the environmental performance of the sector.

Keywords: Competition, Environmental protection, Electricity sector, Hong Kong

Suggested Citation

Cheng, Thomas K. and Lin, Jolene, Introduction of Competition and Environmental Regulation in the Electricity Sector in Hong Kong (December 31, 2014). World Competition: Law and Economics Review, Vol. 37, No. 4, 2014, University of Hong Kong Faculty of Law Research Paper No. 2014/042, Available at SSRN: https://ssrn.com/abstract=2544190

Thomas K. Cheng (Contact Author)

The University of Hong Kong - Faculty of Law ( email )

Pokfulam Road
Hong Kong, Hong Kong
China

HOME PAGE: http://hub.hku.hk/rp/rp01242

Jolene Lin

National University of Singapore (NUS) - Faculty of Law ( email )

469G Bukit Timah Road
Eu Tong Sen Building
Singapore, 259776
Singapore

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