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The determinants of household energy demand in rural Beijing: Can the environmental-friendly technologies be effective?

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Abstract

With rapid economic growth, total energy demand in rural China has increased dramatically and its structure is in the transition from non-commercial to commercial energy. At the same time, it is also expected that households in rural areas will face energy shortage and causes more environmental problems without having more access to renewable energy technologies. However, little is still known about (i) the transition of the energy use and (ii) whether the technologies introduced have been effective or not. To analyze these issues, we have estimated energy demands of rural households by utilizing a survey data taken from Beijing's ten suburban districts. The data contains the information of both non-commercial and commercial energy use, key characteristics of the households and several renewable energy technologies. Our empirical analysis reveals three main results. First, the per capita income is a key factor to per capita energy consumption. More speci cally, a rise in per capita coal consumption strongly diminishes as per capita income increases. Second, coal and LPG prices do not exhibit any substitution effect, but an increase in these prices has strong negative effects on their own energy use. Third, the renewable energy technologies are identi ed to reduce the coal consumption and induce more energy efficiency. Overall, these ndings suggest a positive perspective: if the Chinese government could appropriately design policies associated with renewable energy technologies and with the related energy price controls, then coal consumption will be induced to decline in the near future and the substitution effects to cleaner energy use will speed up. This implies that the smooth energy transition in rural China can be made in more environmentally sustainable manners.

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File URL: http://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2010_15.pdf
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Bibliographic Info

Paper provided by Research Institute, International University of Japan in its series Working Papers with number EMS_2010_15.

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Length: 47 pages
Date of creation: Nov 2010
Date of revision:
Handle: RePEc:iuj:wpaper:ems_2010_15

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Keywords: energy demand; rural households; renewable energy technologies; energy price;

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  1. Sheinbaum, C. & Martínez, M. & Rodríguez, L., 1996. "Trends and prospects in Mexican residential energy use," Energy, Elsevier, vol. 21(6), pages 493-504.
  2. Sylvie Démurger & Martin Fournier, 2010. "Poverty and firewood consumption : A case study of rural households in northern China," Working Papers 1020, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
  3. Pachauri, Shonali & Jiang, Leiwen, 2008. "The household energy transition in India and China," Energy Policy, Elsevier, vol. 36(11), pages 4022-4035, November.
  4. Farsi, Mehdi & Filippini, Massimo & Pachauri, Shonali, 2007. "Fuel choices in urban Indian households," Environment and Development Economics, Cambridge University Press, vol. 12(06), pages 757-774, December.
  5. Chen, Le & Heerink, Nico & van den Berg, Marrit, 2006. "Energy consumption in rural China: A household model for three villages in Jiangxi Province," Ecological Economics, Elsevier, vol. 58(2), pages 407-420, June.
  6. Zhou, Zhongren & Wu, Wenliang & Chen, Qun & Chen, Shufeng, 2008. "Study on sustainable development of rural household energy in northern China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(8), pages 2227-2239, October.
  7. Rasmus Heltberg & Thomas Channing Arndt & Nagothu Udaya Sekhar, 2000. "Fuelwood Consumption and Forest Degradation: A Household Model for Domestic Energy Substitution in Rural India," Land Economics, University of Wisconsin Press, vol. 76(2), pages 213-232.
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Cited by:
  1. Malla, Sunil & Timilsina, Govinda R, 2014. "Household cooking fuel choice and adoption of improved cookstoves in developing countries : a review," Policy Research Working Paper Series 6903, The World Bank.
  2. Zhang, Xiao-Bing & Hassen, Sied, 2014. "Household fuel choice in urban China: A random effect generalized probit analysis," Working Papers in Economics 595, University of Gothenburg, Department of Economics.
  3. Lee, Lisa Yu-Ting, 2013. "Household energy mix in Uganda," Energy Economics, Elsevier, vol. 39(C), pages 252-261.
  4. Arabatzis, Garyfallos & Malesios, Chrisovalantis, 2013. "Pro-environmental attitudes of users and non-users of fuelwood in a rural area of Greece," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 621-630.

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