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

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  • Jingchao, Zhang
  • Kotani, Koji

Abstract

With the recent rapid economic growth, total energy demand in rural China has increased dramatically, and the energy structure is in the transition from non-commercial to commercial sources. Simultaneously, it is expected that households in rural areas will face energy shortages and additional environmental problems unless they have more access to renewable energy technologies. However, little is known about (i) the transition of energy use patterns and (ii) whether introduced technologies have been effective. To analyze these issues, we estimated the energy demands of rural households by using survey data taken from Beijing's ten suburban districts. The data contain information on both non-commercial and commercial energy use, key characteristics of the households and several renewable energy technologies. Our empirical analysis yielded three main results. First, the per capita income is a key factor in the per capita energy consumption. More specifically, the marginal increase (or marginal change) in per capita coal consumption strongly diminishes (or declines) as per capita income increases. Second, coal and liquefied petroleum gas (LPG) prices do not exhibit substitution effects, but an increase in these prices has strong negative effects on the use of these energy resources. Third, renewable energy technologies are identified to reduce coal consumption and to improve energy efficiency. Overall, these findings suggest a positive perspective: if the Chinese government were to design appropriate policies associated with renewable energy technologies and related energy prices, then coal consumption can be reduced in the near future, and the substitution to cleaner energy use will accelerate. Therefore, a smooth energy transition in rural China could be made in a more environmentally sustainable manner.

Suggested Citation

  • Jingchao, Zhang & Kotani, Koji, 2012. "The determinants of household energy demand in rural Beijing: Can environmentally friendly technologies be effective?," Energy Economics, Elsevier, vol. 34(2), pages 381-388.
  • Handle: RePEc:eee:eneeco:v:34:y:2012:i:2:p:381-388 DOI: 10.1016/j.eneco.2011.12.011
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    Cited by:

    1. Lee, Lisa Yu-Ting, 2013. "Household energy mix in Uganda," Energy Economics, Elsevier, pages 252-261.
    2. Fernández González, P. & Presno, M.J. & Landajo, M., 2015. "Regional and sectoral attribution to percentage changes in the European Divisia carbonization index," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1437-1452.
    3. 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.
    4. He, Xiaoping & Reiner, David, 2016. "Electricity demand and basic needs: Empirical evidence from China's households," Energy Policy, Elsevier, pages 212-221.
    5. repec:eee:rensus:v:78:y:2017:i:c:p:933-944 is not listed on IDEAS
    6. Mohammad Z. Hasan & Ronald A. Ratti, 2015. "Coal Sector Returns and Oil Prices: Developed and Emerging Countries," International Journal of Energy Economics and Policy, Econjournals, pages 515-524.
    7. 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.
    8. You, Jing & Kontoleon, Andreas & Wang, Sangui, 2015. "Identifying a Sustainable Pathway to Household Multi-dimensional Poverty Reduction in Rural China," 2015 Conference, August 9-14, 2015, Milan, Italy 211865, International Association of Agricultural Economists.
    9. Toru Ota & Makoto Kakinaka & Koji Kotani, 2017. "Demographic effects on residential electricity and city gas consumption in aging society of Japan," Working Papers SDES-2017-7, Kochi University of Technology, School of Economics and Management, revised Jun 2017.
    10. Christophe Muller & Huijie Yan, 2016. "Household Fuel Use in Developing Countries: Review of Theory and Evidence," Working Papers halshs-01290714, HAL.
    11. Zhang, Zibin & Cai, Wenxin & Feng, Xiangzhao, 2017. "How do urban households in China respond to increasing block pricing in electricity? Evidence from a fuzzy regression discontinuity approach," Energy Policy, Elsevier, vol. 105(C), pages 161-172.
    12. Abubakar Hamid Danlami & Rabiul Islam & Shri Dewi Applanaidu, 2015. "An Analysis of the Determinants of Households’ Energy Choice: A Search for Conceptual Framework," International Journal of Energy Economics and Policy, Econjournals, pages 197-205.
    13. 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.

    More about this item

    Keywords

    Energy demand; Rural households; Renewable energy technologies; Energy price;

    JEL classification:

    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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