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




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.

Suggested Citation

  • 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.
  • Handle: RePEc:iuj:wpaper:ems_2010_15

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    References listed on IDEAS

    1. Démurger, Sylvie & Fournier, Martin, 2011. "Poverty and firewood consumption: A case study of rural households in northern China," China Economic Review, Elsevier, vol. 22(4), pages 512-523.
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    Cited by:

    1. Lee, Lisa Yu-Ting, 2013. "Household energy mix in Uganda," Energy Economics, Elsevier, vol. 39(C), 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. Kenichi Mizobuchi & Kenji Takeuchi, 2015. "Replacement or Additional Purchase: The Impact of Energy-Efficient Appliances on Household Electricity Saving," Discussion Papers 1520, Graduate School of Economics, Kobe University.
    4. 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.
    5. He, Xiaoping & Reiner, David, 2016. "Electricity demand and basic needs: Empirical evidence from China's households," Energy Policy, Elsevier, vol. 90(C), pages 212-221.
    6. repec:eee:rensus:v:78:y:2017:i:c:p:933-944 is not listed on IDEAS
    7. 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, vol. 5(2), pages 515-524.
    8. 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.
    9. 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.
    10. repec:eee:enepol:v:114:y:2018:i:c:p:234-244 is not listed on IDEAS
    11. 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.
    12. Christophe Muller & Huijie Yan, 2016. "Household Fuel Use in Developing Countries: Review of Theory and Evidence," Working Papers halshs-01290714, HAL.
    13. 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.
    14. 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, vol. 5(1), pages 197-205.
    15. 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


    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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