IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v113y2018icp559-570.html
   My bibliography  Save this article

Green transition of energy systems in rural China: National survey evidence of households’ discrete choices on water heaters

Author

Listed:
  • Ma, Ben
  • Yu, Yihua
  • Urban, Frauke

Abstract

Energy systems in rural China are experiencing a transition from traditional fossil fuels to renewables. This paper aims to investigate the potential factors that influence the choices of rural residents regarding water heaters with a focus on the low-carbon transition to solar water heating systems. To this end, a face-to-face questionnaire survey is undertaken with 3404 rural households randomly selected among 12 representative provinces. A comprehensive set of discrete choice modelling approaches were used. The empirical results show that (1) sociodemographic variables have significant effects on residents’ first-stage choice of a water heater (to buy or not to buy) but few effects on the second-stage decision to choose electric, LPG, or solar water heaters (which type to buy); (2) information spillover is important to facilitate the usage of water heaters, particularly of solar products; (3) the electricity price, which is regulated at a very low rate, has no apparent effect on the choice of solar water heaters; (4) government subsidy has a significant effect in the first stage but no differentiated effect on the decision choice in the second stage. Policy and managerial implications are presented to speed up the ongoing low-carbon transition of energy systems in China.

Suggested Citation

  • Ma, Ben & Yu, Yihua & Urban, Frauke, 2018. "Green transition of energy systems in rural China: National survey evidence of households’ discrete choices on water heaters," Energy Policy, Elsevier, vol. 113(C), pages 559-570.
    • Handle: RePEc:eee:enepol:v:113:y:2018:i:c:p:559-570
    DOI: 10.1016/j.enpol.2017.11.046
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421517307929
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2017.11.046?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. Scarpa, Riccardo & Willis, Ken, 2010. "Willingness-to-pay for renewable energy: Primary and discretionary choice of British households' for micro-generation technologies," Energy Economics, Elsevier, vol. 32(1), pages 129-136, January.
    2. Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-362, March.
    3. Chang, K.C. & Lin, W.M. & Lee, T.S. & Chung, K.M., 2009. "Local market of solar water heaters in Taiwan: Review and perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(9), pages 2605-2612, December.
    4. Kenneth Gillingham & Richard G. Newell & Karen Palmer, 2009. "Energy Efficiency Economics and Policy," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 597-620, September.
    5. Zheng, Xinye & Wei, Chu & Qin, Ping & Guo, Jin & Yu, Yihua & Song, Feng & Chen, Zhanming, 2014. "Characteristics of residential energy consumption in China: Findings from a household survey," Energy Policy, Elsevier, vol. 75(C), pages 126-135.
    6. Michelsen, Carl Christian & Madlener, Reinhard, 2012. "Homeowners' preferences for adopting innovative residential heating systems: A discrete choice analysis for Germany," Energy Economics, Elsevier, vol. 34(5), pages 1271-1283.
    7. Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, vol. 52(5), pages 1219-1240, September.
    8. Wasi, Nada & Carson, Richard T., 2013. "The influence of rebate programs on the demand for water heaters: The case of New South Wales," Energy Economics, Elsevier, vol. 40(C), pages 645-656.
    9. Michelsen, Carl Christian & Madlener, Reinhard, 2013. "Motivational factors influencing the homeowners’ decisions between residential heating systems: An empirical analysis for Germany," Energy Policy, Elsevier, vol. 57(C), pages 221-233.
    10. Charles Towe & Chad Lawley, 2013. "The Contagion Effect of Neighboring Foreclosures," American Economic Journal: Economic Policy, American Economic Association, vol. 5(2), pages 313-335, May.
    11. Decker, Thomas & Menrad, Klaus, 2015. "House owners' perceptions and factors influencing their choice of specific heating systems in Germany," Energy Policy, Elsevier, vol. 85(C), pages 150-161.
    12. Hunt Allcott & Michael Greenstone, 2012. "Is There an Energy Efficiency Gap?," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 3-28, Winter.
    13. Zhu Liu, 2015. "China?s Carbon Emissions Report 2015," Working Paper 269176, Harvard University OpenScholar.
    14. Ana Ramos & Xavier Labandeira & Andreas Löschel, 2016. "Pro-environmental Households and Energy Efficiency in Spain," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(2), pages 367-393, February.
    15. Han, Jingyi & Mol, Arthur P.J. & Lu, Yonglong, 2010. "Solar water heaters in China: A new day dawning," Energy Policy, Elsevier, vol. 38(1), pages 383-391, January.
    16. Ruokamo, Enni, 2016. "Household preferences of hybrid home heating systems – A choice experiment application," Energy Policy, Elsevier, vol. 95(C), pages 224-237.
    17. Liao, Huei-Chu & Chang, Tsai-Feng, 2002. "Space-heating and water-heating energy demands of the aged in the US," Energy Economics, Elsevier, vol. 24(3), pages 267-284, May.
    18. 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.
    19. Marcello Graziano & Kenneth Gillingham, 2015. "Spatial patterns of solar photovoltaic system adoption: The influence of neighbors and the built environment," Journal of Economic Geography, Oxford University Press, vol. 15(4), pages 815-839.
    20. Braun, Frauke G., 2010. "Determinants of households' space heating type: A discrete choice analysis for German households," Energy Policy, Elsevier, vol. 38(10), pages 5493-5503, October.
    21. Rode, Johannes & Weber, Alexander, 2016. "Does localized imitation drive technology adoption? A case study on rooftop photovoltaic systems in Germany," Journal of Environmental Economics and Management, Elsevier, vol. 78(C), pages 38-48.
    22. Ma, Ben & Song, Guojun & Smardon, Richard C. & Chen, Jing, 2014. "Diffusion of solar water heaters in regional China: Economic feasibility and policy effectiveness evaluation," Energy Policy, Elsevier, vol. 72(C), pages 23-34.
    23. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387.
    24. Zeng, Ming & Yang, Yongqi & Wang, Lihua & Sun, Jinghui, 2016. "The power industry reform in China 2015: Policies, evaluations and solutions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 94-110.
    25. Small, Kenneth A & Hsiao, Cheng, 1985. "Multinomial Logit Specification Tests," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(3), pages 619-627, October.
    26. Zhu, Junming & Ruth, Matthias, 2015. "Relocation or reallocation: Impacts of differentiated energy saving regulation on manufacturing industries in China," Ecological Economics, Elsevier, vol. 110(C), pages 119-133.
    27. Charles F. Manski, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(3), pages 531-542.
    28. Goess, Simon & de Jong, Martin & Ravesteijn, Wim, 2015. "What makes renewable energy successful in China? The case of the Shandong province solar water heater innovation system," Energy Policy, Elsevier, vol. 86(C), pages 684-696.
    29. Yu, Yihua & Guo, Jin, 2016. "Identifying electricity-saving potential in rural China: Empirical evidence from a household survey," Energy Policy, Elsevier, vol. 94(C), pages 1-9.
    30. Chang, Keh-Chin & Lin, Wei-Min & Lee, Tsong-Sheng & Chung, Kung-Ming, 2011. "Subsidy programs on diffusion of solar water heaters: Taiwan's experience," Energy Policy, Elsevier, vol. 39(2), pages 563-567, February.
    31. Li, Wei & Song, Guojun & Beresford, Melanie & Ma, Ben, 2011. "China's transition to green energy systems: The economics of home solar water heaters and their popularization in Dezhou city," Energy Policy, Elsevier, vol. 39(10), pages 5909-5919, October.
    32. Gill, Nicholas & Osman, Peter & Head, Lesley & Voyer, Michelle & Harada, Theresa & Waitt, Gordon & Gibson, Chris, 2015. "Looking beyond installation: Why households struggle to make the most of solar hot water systems," Energy Policy, Elsevier, vol. 87(C), pages 83-94.
    33. Goto, Hisanori & Goto, Mika & Sueyoshi, Toshiyuki, 2011. "Consumer choice on ecologically efficient water heaters: Marketing strategy and policy implications in Japan," Energy Economics, Elsevier, vol. 33(2), pages 195-208, March.
    34. Chang, Keh-Chin & Lin, Wei-Min & Leu, Tzong-Shyng & Chung, Kung-Ming, 2016. "Perspectives for solar thermal applications in Taiwan," Energy Policy, Elsevier, vol. 94(C), pages 25-28.
    35. Yuan, Xueliang & Zuo, Jian & Ma, Chunyuan, 2011. "Social acceptance of solar energy technologies in China--End users' perspective," Energy Policy, Elsevier, vol. 39(3), pages 1031-1036, March.
    36. Liu, Li-qun & Wang, Zhi-xin & Zhang, Hua-qiang & Xue, Ying-cheng, 2010. "Solar energy development in China--A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(1), pages 301-311, January.
    37. Urban, Frauke & Geall, Sam & Wang, Yu, 2016. "Solar PV and solar water heaters in China: Different pathways to low carbon energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 64(C), pages 531-542.
    38. Lin, W.M. & Chang, K.C. & Chung, K.M., 2015. "Payback period for residential solar water heaters in Taiwan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 901-906.
    39. Wei Li & Tzameret H. Rubin & Paul A. Onyina, 2013. "Comparing Solar Water Heater Popularization Policies in China, Israel and Australia: The Roles of Governments in Adopting Green Innovations," Sustainable Development, John Wiley & Sons, Ltd., vol. 21(3), pages 160-170, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tang, Songlin & Zhou, Wenbing & Li, Xinjin & Chen, Yingchao & Zhang, Qian & Zhang, Xiliang, 2021. "Subsidy strategy for distributed photovoltaics: A combined view of cost change and economic development," Energy Economics, Elsevier, vol. 97(C).
    2. Han, Jiashi & Zhang, Lei & Li, Yang, 2022. "Spatiotemporal analysis of rural energy transition and upgrading in developing countries: The case of China," Applied Energy, Elsevier, vol. 307(C).
    3. Xiaojun Liu & Min Zhang & Xi Luo & Peng Wang & Ting Mu & Hui Ming & Deze Hu & Tianliang Zhao & Yanzi Yang, 2022. "Impact of socio-economic characteristics on energy consumption behaviors of suburban rural residents: evidence from on-site surveys in the Guanzhong Plain of China [Occupant behavior and robustness," International Journal of Low-Carbon Technologies, Oxford University Press, vol. 17, pages 38-57.
    4. Irwin, Nicholas B., 2021. "Sunny days: Spatial spillovers in photovoltaic system adoptions," Energy Policy, Elsevier, vol. 151(C).
    5. Huang, Junpeng & Tian, Zhiyong & Fan, Jianhua, 2019. "A comprehensive analysis on development and transition of the solar thermal market in China with more than 70% market share worldwide," Energy, Elsevier, vol. 174(C), pages 611-624.
    6. Han, Jiashi & Hou, Xiaochao & Zhang, Lei, 2022. "Policy implications of China's rural household coal governance from the perspective of the spillover effect," Energy, Elsevier, vol. 242(C).
    7. Xiang Ruan & Rong Sheng & Tuo Lin, 2020. "Environmental Policy Integration in the Energy Sector of China: The Roles of the Institutional Context," IJERPH, MDPI, vol. 17(24), pages 1-14, December.
    8. Tanaka, Takuro & Mizutani, Fumitoshi, 2023. "Determinants of the adoption of energy efficient water heaters in the residential sector: Evidence from a survey in Japan," Energy Policy, Elsevier, vol. 180(C).
    9. Shucai Bai & Fangyi Li & Wu Xie, 2022. "Green but Unpopular? Analysis on Purchase Intention of Heat Pump Water Heaters in China," Energies, MDPI, vol. 15(7), pages 1-19, March.

    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. Curtis, John & McCoy, Daire & Aravena, Claudia, 2018. "Heating system upgrades: The role of knowledge, socio-demographics, building attributes and energy infrastructure," Energy Policy, Elsevier, vol. 120(C), pages 183-196.
    2. Ruokamo, Enni, 2016. "Household preferences of hybrid home heating systems – A choice experiment application," Energy Policy, Elsevier, vol. 95(C), pages 224-237.
    3. McCoy, Daire & Curtice, John, 2018. "Exploring the spatial and temporal determinants of gas central heating adoption," LSE Research Online Documents on Economics 86625, London School of Economics and Political Science, LSE Library.
    4. McCoy, Daire & Curtis, John, 2018. "Exploring the spatial and temporal determinants of gas central heating adoption," Resource and Energy Economics, Elsevier, vol. 52(C), pages 64-86.
    5. Li, Pei-Hao & Keppo, Ilkka & Strachan, Neil, 2018. "Incorporating homeowners' preferences of heating technologies in the UK TIMES model," Energy, Elsevier, vol. 148(C), pages 716-727.
    6. Chen, Qiu, 2021. "District or distributed space heating in rural residential sector? Empirical evidence from a discrete choice experiment in South China," Energy Policy, Elsevier, vol. 148(PA).
    7. 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.
    8. Jingchao, Zhang & Kotani, Koji & Saijo, Tatsuyoshi, 2018. "Public acceptance of environmentally friendly heating in Beijing: A case of a low temperature air source heat pump," Energy Policy, Elsevier, vol. 117(C), pages 75-85.
    9. Selvakkumaran, Sujeetha & Ahlgren, Erik O., 2019. "Determining the factors of household energy transitions: A multi-domain study," Technology in Society, Elsevier, vol. 57(C), pages 54-75.
    10. Curtis, John & McCoy, Daire & Aravena Novielli, Claudia, 2017. "Determinants of residential heating system choice: an analysis of Irish households," Papers WP576, Economic and Social Research Institute (ESRI).
    11. Michelsen, Carl Christian & Madlener, Reinhard, 2012. "Homeowners' preferences for adopting innovative residential heating systems: A discrete choice analysis for Germany," Energy Economics, Elsevier, vol. 34(5), pages 1271-1283.
    12. Nicholas Rivers and Leslie Shiell, 2016. "Free-Riding on Energy Efficiency Subsidies: the Case of Natural Gas Furnaces in Canada," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    13. Enni Ruokamo & Mikołaj Czajkowski & Nick Hanley & Artti Juutinen & Rauli Svento, 2016. "Linking perceived choice complexity with scale heterogeneity in discrete choice experiments: home heating in Finland," Working Papers 2016-30, Faculty of Economic Sciences, University of Warsaw.
    14. Lang, Ghislaine & Farsi, Mehdi & Lanz, Bruno & Weber, Sylvain, 2021. "Energy efficiency and heating technology investments: Manipulating financial information in a discrete choice experiment," Resource and Energy Economics, Elsevier, vol. 64(C).
    15. Wasi, Nada & Carson, Richard T., 2013. "The influence of rebate programs on the demand for water heaters: The case of New South Wales," Energy Economics, Elsevier, vol. 40(C), pages 645-656.
    16. Hecher, Maria & Hatzl, Stefanie & Knoeri, Christof & Posch, Alfred, 2017. "The trigger matters: The decision-making process for heating systems in the residential building sector," Energy Policy, Elsevier, vol. 102(C), pages 288-306.
    17. Michelsen, Carl Christian & Madlener, Reinhard, 2011. "Homeowners' Preferences for Adopting Residential Heating Systems: A Discrete Choice Analysis for Germany," FCN Working Papers 9/2011, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    18. Damette, Olivier & Delacote, Philippe & Lo, Gaye Del, 2018. "Households energy consumption and transition toward cleaner energy sources," Energy Policy, Elsevier, vol. 113(C), pages 751-764.
    19. Meles, Tensay Hadush & Ryan, Lisa & Mukherjee, Sanghamitra C., 2022. "Heterogeneity in preferences for renewable home heating systems among Irish households," Applied Energy, Elsevier, vol. 307(C).
    20. Sahari, Anna, 2019. "Electricity prices and consumers’ long-term technology choices: Evidence from heating investments," European Economic Review, Elsevier, vol. 114(C), pages 19-53.

    More about this item

    Keywords

    Water heater; Consumer behaviour; Renewable energy; Discrete choice model; Rural China;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

    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:enepol:v:113:y:2018:i:c:p:559-570. 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/enpol .

    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.