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Household fuel choice in urban China: A random effect generalized probit analysis

  • Zhang, Xiao-Bing

    ()

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Hassen, Sied

    ()

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Using seven rounds of household survey data that span more than a decade, this paper analyzes the determinants of household fuel choice in urban China. Unlike the existing studies, we use an empirical strategy that takes into account the potential heterogeneous effects of socio-economic factors in households’ preference ordering. Robustness of this empirical strategy is checked against alternative methods. The results show that household fuel choice in urban China is related to fuel prices, household’s economic status and size, and household head’s gender, education and occupation. Our results suggest that policies and interventions that raise household income, reduce prices of clean fuel sources, and empower women in the household are of great significance in encouraging the adoption of clean energy sources.

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File URL: https://gupea.ub.gu.se/handle/2077/35817
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Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 595.

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Length: 39 pages
Date of creation: May 2014
Date of revision:
Handle: RePEc:hhs:gunwpe:0595
Contact details of provider: Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/

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  1. Hosier, Richard H. & Dowd, Jeffrey, 1987. "Household fuel choice in Zimbabwe : An empirical test of the energy ladder hypothesis," Resources and Energy, Elsevier, vol. 9(4), pages 347-361, December.
  2. Leiwen Jiang & Brian C. O'Neill, 2004. "The energy transition in rural China," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 21(1/2), pages 2-26.
  3. 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.
  4. Zhang Jingchao & Koji Kotani, 2010. "The determinants of household energy demand in rural Beijing: Can the environmental-friendly technologies be effective?," Working Papers EMS_2010_15, Research Institute, International University of Japan.
  5. Masera, Omar R. & Saatkamp, Barbara D. & Kammen, Daniel M., 2000. "From Linear Fuel Switching to Multiple Cooking Strategies: A Critique and Alternative to the Energy Ladder Model," World Development, Elsevier, vol. 28(12), pages 2083-2103, December.
  6. Pachauri, Shonali & Jiang, Leiwen, 2008. "The household energy transition in India and China," Energy Policy, Elsevier, vol. 36(11), pages 4022-4035, November.
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