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

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  • 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)

Abstract

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.

Suggested Citation

  • 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.
  • Handle: RePEc:hhs:gunwpe:0595
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    File URL: https://gupea.ub.gu.se/handle/2077/35817
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    References listed on IDEAS

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    1. Jingchao, Zhang & Kotani, Koji, 2012. "The determinants of household energy demand in rural Beijing: Can environmentally friendly technologies be effective?," Energy Economics, Elsevier, pages 381-388.
    2. 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.
    3. Hosier, Richard H. & Dowd, Jeffrey, 1987. "Household fuel choice in Zimbabwe : An empirical test of the energy ladder hypothesis," Resources and Energy, Elsevier, pages 347-361.
    4. 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.
    5. 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.
    6. Pachauri, Shonali & Jiang, Leiwen, 2008. "The household energy transition in India and China," Energy Policy, Elsevier, vol. 36(11), pages 4022-4035, November.
    7. Jingchao, Zhang & Kotani, Koji, 2012. "The determinants of household energy demand in rural Beijing: Can environmentally friendly technologies be effective?," Energy Economics, Elsevier, pages 381-388.
    8. Sudhakara Reddy, B., 1995. "A multilogit model for fuel shifts in the domestic sector," Energy, Elsevier, vol. 20(9), pages 929-936.
    9. Reddy, Amulya K.N. & Reddy, B.Sudhakara, 1994. "Substitution of energy carriers for cooking in Bangalore," Energy, Elsevier, vol. 19(5), pages 561-571.
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    Cited by:

    1. Christophe Muller & Huijie Yan, 2016. "Household Fuel Use in Developing Countries: Review of Theory and Evidence," Working Papers halshs-01290714, HAL.
    2. Liao, Hua & Tang, Xin & Wei, Yi-Ming, 2016. "Solid fuel use in rural China and its health effects," Renewable and Sustainable Energy Reviews, Elsevier, pages 900-908.

    More about this item

    Keywords

    Household fuel choice; Panel data; Random effect generalized probit model; Urban China;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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