2017 EDITION

AUTOGAS INCENTIVE POLICIES

A COUNTRY-BY-COUNTRY ANALYSIS OF WHY AND HOW GOVERNMENTS ENCOURAGE AUTOGAS AND WHAT WORKS

The World LPG Association The World LPG Association (WLPGA) was established in 1987 in Dublin, Ireland, under the initial name of The World LPG Forum. WLPGA unites the broad interests of the vast worldwide LPG industry in one organisation. It was granted Category II Consultative Status with the United Nations Economic and Social Council in 1989. WLPGA exists to provide representation of LPG use through leadership of the industry worldwide.

The European LPG Association The European LPG Association (AEGPL) is the sole representative of the LPG industry at European level, representing national LPG Associations as well as distributors and equipment manufacturers from across Europe. Its mission is to engage with EU decision-makers and the wider policy community in order to optimise the contribution that LPG – as a clean and immediately available energy source – can make to meeting Europe's energy and environmental challenges.

Acknowledgements This report was prepared by Trevor Morgan of Menecon Consulting. Acknowledgement also goes out to the many representatives of the LPG industry in the countries surveyed in the report, who provided invaluable assistance. Cécile Nourigat, Autogas Manager at WLPGA and AEGPL, was responsible for co-ordinating the project.

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Copyright © 2017 World LPG Association (WLPGA) and the European LPG Association (AEGPL). All rights reserved. Neither this publication nor any part of it may be reproduced, stored in any retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publishers. All information in this report is verified to the best of the authors’ and publishers’ ability. They do not guarantee the accuracy of the data contained in the report and accept no responsibility for any consequence of their use.

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AUTOGAS INCENTIVE POLICIES

Contents

Contents Contents Glossary Executive summary Introduction

4 7 8 12

Objectives of the study Approach and scope Structure of this report

12 12 13

PART A: MAIN FINDINGS

14

1

15

The global Autogas market

1.2 1.2 1.2.1 1.2.2 1.2.3 1.2.4

2

Government policies to promote alternative fuels

2.1 2.2 2.2.1 2.2.2 2.2.3

3

4

5 5.1 5.2 5.3

Fuel taxation and pricing Comparative taxation of Autogas Comparative pricing of Autogas Autogas vehicle subsidies Other incentives

Effectiveness of Autogas incentive policies

15 18 18 19 21 21

24 24 25 25 26 27

28 28 28 30 33 34

37

Autogas share of the automotive-fuel market 37 Comparative competitiveness of Autogas 38 Impact of Autogas competitiveness on automotive-fuel market penetration 40 Impact of non-financial incentives 41

Lessons for policy makers The rationale for promoting Autogas Critical success factors for Autogas market development Formulating an effective Autogas strategy

44 44 45 46

PART B: COUNTRY SURVEYS

48

1

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1.1 1.2 1.3

2 2.1 2.2 2.3

3 3.1 3.2 WLPGA/AEGPL

Principles of alternative-fuel policies Typology of policies to promote alternative fuels Financial incentives Regulatory policies and measures Other measures

International comparison of Autogas incentive policies

3.1 3.1.1 3.1.2 3.2 3.3 4.1 4.2 4.3 4.4

Market trends Drivers of Autogas use Alternative automotive-fuel policies Environmental benefits of Autogas Practical considerations Cost factors