IDEAS home Printed from https://ideas.repec.org/a/eee/chieco/v77y2023ics1043951x22001365.html
   My bibliography  Save this article

Who benefits from household energy transition? A cost-benefit analysis based on household survey data in China

Author

Listed:
  • Xie, Lunyu
  • Wei, Chu
  • Zheng, Xinye
  • Liu, Yang
  • Wu, Wanyi
  • Feng, Ziru

Abstract

Aiming to alleviate air pollution and carbon emissions from heating, Northern China mandatorily converted household heating energy from coal to electricity (Coal to Electricity), natural gas (Coal to Gas), and clean coal (Clean Coal Replacement). Based on large-scale household survey data in Beijing, this study provides a cost-benefit analysis of the transition program and distinguishes between social and private benefits. The results show that all three programs improve the welfare of society and households. Compared to the Clean Coal Replacement program, Coal to Electricity and Coal to Gas programs provide higher environmental benefits while bringing about larger costs, and thus the benefit-to-cost ratios are lower. We also find that private net benefits are lower than social net benefits, and household satisfaction with the programs is positively determined by private net benefits rather than social net benefits. Furthermore, households with lower income and larger housing areas are more likely to be harmed by the programs by a larger burden from the heating energy transition. These findings call attention to inequity issues during the household energy transition.

Suggested Citation

  • Xie, Lunyu & Wei, Chu & Zheng, Xinye & Liu, Yang & Wu, Wanyi & Feng, Ziru, 2023. "Who benefits from household energy transition? A cost-benefit analysis based on household survey data in China," China Economic Review, Elsevier, vol. 77(C).
    • Handle: RePEc:eee:chieco:v:77:y:2023:i:c:s1043951x22001365
    DOI: 10.1016/j.chieco.2022.101878
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1043951X22001365
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.chieco.2022.101878?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rozenberg, Julie & Vogt-Schilb, Adrien & Hallegatte, Stephane, 2020. "Instrument choice and stranded assets in the transition to clean capital," Journal of Environmental Economics and Management, Elsevier, vol. 100(C).
    2. Lin, Jing & Mou, Dunguo, 2021. "Analysis of the optimal spatial distribution of natural gas under ‘transition from coal to gas’ in China," Resource and Energy Economics, Elsevier, vol. 66(C).
    3. Yang, Xi & Teng, Fei & Wang, Gehua, 2013. "Incorporating environmental co-benefits into climate policies: A regional study of the cement industry in China," Applied Energy, Elsevier, vol. 112(C), pages 1446-1453.
    4. Zhang, Xiang & Jin, Yana & Dai, Hancheng & Xie, Yang & Zhang, Shiqiu, 2019. "Health and economic benefits of cleaner residential heating in the Beijing–Tianjin–Hebei region in China," Energy Policy, Elsevier, vol. 127(C), pages 165-178.
    5. Severin Borenstein & Lucas W. Davis, 2016. "The Distributional Effects of US Clean Energy Tax Credits," Tax Policy and the Economy, University of Chicago Press, vol. 30(1), pages 191-234.
    6. Zhang, Yanfang & Shi, Xunpeng & Qian, Xiangyan & Chen, Sai & Nie, Rui, 2021. "Macroeconomic effect of energy transition to carbon neutrality: Evidence from China's coal capacity cut policy," Energy Policy, Elsevier, vol. 155(C).
    7. Xie, Lunyu & Hu, Xian & Zhang, Xinyi & Zhang, Xiao-Bing, 2022. "Who suffers from energy poverty in household energy transition? Evidence from clean heating program in rural China," Energy Economics, Elsevier, vol. 106(C).
    8. Budya, Hanung & Yasir Arofat, Muhammad, 2011. "Providing cleaner energy access in Indonesia through the megaproject of kerosene conversion to LPG," Energy Policy, Elsevier, vol. 39(12), pages 7575-7586.
    9. Nguyen, Trung Thanh & Nguyen, Thanh-Tung & Hoang, Viet-Ngu & Wilson, Clevo & Managi, Shunsuke, 2019. "Energy transition, poverty and inequality in Vietnam," Energy Policy, Elsevier, vol. 132(C), pages 536-548.
    10. Michelsen, Carl Christian & Madlener, Reinhard, 2016. "Switching from fossil fuel to renewables in residential heating systems: An empirical study of homeowners' decisions in Germany," Energy Policy, Elsevier, vol. 89(C), pages 95-105.
    11. Ryna Yiyun Cui & Nathan Hultman & Diyang Cui & Haewon McJeon & Sha Yu & Morgan R. Edwards & Arijit Sen & Kaihui Song & Christina Bowman & Leon Clarke & Junjie Kang & Jiehong Lou & Fuqiang Yang & Jiaha, 2021. "A plant-by-plant strategy for high-ambition coal power phaseout in China," Nature Communications, Nature, vol. 12(1), pages 1-10, December.
    12. Christopher Barrington-Leigh & Jill Baumgartner & Ellison Carter & Brian E. Robinson & Shu Tao & Yuanxun Zhang, 2019. "An evaluation of air quality, home heating and well-being under Beijing’s programme to eliminate household coal use," Nature Energy, Nature, vol. 4(5), pages 416-423, May.
    13. Sanya Carley & David M. Konisky, 2020. "The justice and equity implications of the clean energy transition," Nature Energy, Nature, vol. 5(8), pages 569-577, August.
    14. Xu, Shuo & Ge, Jianping, 2020. "Sustainable shifting from coal to gas in North China: An analysis of resident satisfaction," Energy Policy, Elsevier, vol. 138(C).
    15. Nguyen, Trung Thanh & Nguyen, Thanh-Tung & Hoang, Viet-Ngu & Wilson, Clevo, 2019. "Energy transition, poverty and inequality: panel evidence from Vietnam," MPRA Paper 107182, University Library of Munich, Germany, revised 10 May 2019.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fan, Shengyue & Zha, Shuai & Zhao, Chenxi & Sizheng, Fangyuan & Li, Meihui, 2022. "Using energy vulnerability to measure distributive injustice in rural heating energy reform: A case study of natural gas replacing bulk coal for heating in Gaocheng District, Hebei Province, China," Ecological Economics, Elsevier, vol. 197(C).
    2. Kocak, Emrah & Ulug, Eyup Emre & Oralhan, Burcu, 2023. "The impact of electricity from renewable and non-renewable sources on energy poverty and greenhouse gas emissions (GHGs): Empirical evidence and policy implications," Energy, Elsevier, vol. 272(C).
    3. Brown, David P. & Muehlenbachs, Lucija, 2023. "The Value of Electricity Reliability: Evidence from Battery Adoption," Working Papers 2023-5, University of Alberta, Department of Economics.
    4. Li, Jiajia & Li, Houjian, 2022. "Spiritual support or living support: Which alleviates solid fuel use for rural households in ethnical minority regions of China?," Renewable Energy, Elsevier, vol. 189(C), pages 479-491.
    5. Shahzad, Umer & Gupta, Mansi & Sharma, Gagan Deep & Rao, Amar & Chopra, Ritika, 2022. "Resolving energy poverty for social change: Research directions and agenda," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    6. Cong Khai Dinh & Quang Thanh Ngo & Trung Thanh Nguyen, 2021. "Medium- and High-Tech Export and Renewable Energy Consumption: Non-Linear Evidence from the ASEAN Countries," Energies, MDPI, vol. 14(15), pages 1-16, July.
    7. Helmke-Long, Laura & Carley, Sanya & Konisky, David M., 2022. "Municipal government adaptive capacity programs for vulnerable populations during the U.S. energy transition," Energy Policy, Elsevier, vol. 167(C).
    8. Carley, Sanya & Engle, Caroline & Konisky, David M., 2021. "An analysis of energy justice programs across the United States," Energy Policy, Elsevier, vol. 152(C).
    9. Dan Costin Nitescu & Valentin Murgu, 2022. "Factors Supporting the Transition to a “Green” European Economy and Funding Mechanisms," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(61), pages 630-630, August.
    10. Dong, Kangyin & Wang, Bo & Zhao, Jun & Taghizadeh-Hesary, Farhad, 2022. "Mitigating carbon emissions by accelerating green growth in China," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 226-243.
    11. Liu, Hongxun & Mauzerall, Denise L., 2020. "Costs of clean heating in China: Evidence from rural households in the Beijing-Tianjin-Hebei region," Energy Economics, Elsevier, vol. 90(C).
    12. Daniel Raimi & Emily Grubert & Jake Higdon & Gilbert Metcalf & Sophie Pesek & Devyani Singh, 2023. "The Fiscal Implications of the US Transition Away from Fossil Fuels," Review of Environmental Economics and Policy, University of Chicago Press, vol. 17(2), pages 295-315.
    13. Subedi, Mukti Nath & Bharadwaj, Bishal & Rafiq, Shuddhasattwa, 2023. "Who benefits from the decentralised energy system (DES)? Evidence from Nepal’s micro-hydropower (MHP)," Energy Economics, Elsevier, vol. 120(C).
    14. Li, Hui & Zhang, Ruining & Ai, Xianneng, 2022. "Cost estimation of “coal-to-gas” project: Government and residents’ perspectives," Energy Policy, Elsevier, vol. 167(C).
    15. Tao, Chang-Qi & Yi, Meng-Ying & Wang, Chang-Song, 2023. "Coupling coordination analysis and Spatiotemporal heterogeneity between data elements and green development in China," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 1-15.
    16. Chen, Si-Yuan & Xue, Meng-Tian & Wang, Zhao-Hua & Tian, Xin & Zhang, Bin, 2022. "Exploring pathways of phasing out clean heating subsidies for rural residential buildings in China," Energy Economics, Elsevier, vol. 116(C).
    17. David M. Konisky & Sanya Carley, 2021. "What We Can Learn From The Green New Deal About The Importance Of Equity In National Climate Policy," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 40(3), pages 996-1002, June.
    18. Chen, Haitao & Zhang, Bin & Wang, Zhaohua, 2022. "Hidden inequality in household electricity consumption: Measurement and determinants based on large-scale smart meter data," China Economic Review, Elsevier, vol. 71(C).
    19. Vona, Francesco, 2023. "Managing the distributional effects of climate policies: A narrow path to a just transition," Ecological Economics, Elsevier, vol. 205(C).
    20. Zhang, Mingming & Liu, Jinghui & Liu, Liyun & Zhou, Dequn, 2023. "Inequality in urban household energy consumption for 30 Chinese provinces," Energy Policy, Elsevier, vol. 172(C).

    More about this item

    Keywords

    Cost-benefit analysis; Energy transition; Inequity; Private benefit; Social benefit;
    All these keywords.

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:chieco:v:77:y:2023:i:c:s1043951x22001365. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/chieco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.