Who benefits from household energy transition? A cost-benefit analysis based on household survey data in China

Lunyu Xie, Chu Wei, Xinye Zheng, Yang Liu, Wanyi Wu and Ziru Feng

China Economic Review, 2023, vol. 77, issue C

Abstract: Aiming to alleviate air pollution and carbon emissions from heating, Northern China mandatorily converted household heating energy from coal to electricity (Coal to Electricity), natural gas (Coal to Gas), and clean coal (Clean Coal Replacement). Based on large-scale household survey data in Beijing, this study provides a cost-benefit analysis of the transition program and distinguishes between social and private benefits. The results show that all three programs improve the welfare of society and households. Compared to the Clean Coal Replacement program, Coal to Electricity and Coal to Gas programs provide higher environmental benefits while bringing about larger costs, and thus the benefit-to-cost ratios are lower. We also find that private net benefits are lower than social net benefits, and household satisfaction with the programs is positively determined by private net benefits rather than social net benefits. Furthermore, households with lower income and larger housing areas are more likely to be harmed by the programs by a larger burden from the heating energy transition. These findings call attention to inequity issues during the household energy transition.

Keywords: Cost-benefit analysis; Energy transition; Inequity; Private benefit; Social benefit (search for similar items in EconPapers)
JEL-codes: Q48 Q53 Q58 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:77:y:2023:i:c:s1043951x22001365

DOI: 10.1016/j.chieco.2022.101878

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