Review of methanol vehicle policies in China: current status and future implications

Abstract

Methanol vehicles, as a type of alternative energy vehicle, become an approach to mitigate the dependence on petroleum and to reduce emissions. A number of policies for implementing methanol vehicles have been promulgated by the Chinese government to achieve sustainable development. This paper summarizes existing policies for pilot projects, methanol fuel and fuel stations, technological improvement and manufacturer engagement. Then, the paper systematically reviews the released policies based on their categorisation and timeline. Whilst the released policies for pilot projects were sufficient and effectiveness, there was a lack of incentive policies for other aspects. Based on the policy assessment, it is necessary to enhance the continuity and effectivity of the existing policy mechanism. As a contribution, this paper provides some suggestions including: developing follow-up policies after the accomplishment of pilot projects; providing more incentive policies to encourage technological improvement of methanol vehicles; creating a trans-provincial methanol fuel region and enhancing manufacturer engagement by narrowing the subsidy gaps between methanol vehicles and other AEVs.