Exploring the participation willingness and potential carbon emission reduction of Chinese residential green electricity market

Boqiang Lin () and Qiao Qiao

Energy Policy, 2023, vol. 174, issue C

Abstract: China officially established a green electricity trading market in 2021. This study investigated the intention of Chinese households to participate in the green electricity tariff and surveyed their acceptable maximum premium; afterwards, the corresponding potential carbon emission reduction is evaluated. The survey shows that 82% of Chinese households support the additional willingness-to-pay (WTP) for green electricity. The mean willingness-to-pay values without protest-zeros are evaluated as RMB14.6 with a gender differential that men prefer to pay more than women. Relative impact factors analysis shows that household' intention of using green-e significantly impacts their participation in extra WTP, but households' income does not show a significant effect. On the other hand, the model for extra expenditure shows the opposite effect of these two factors. Last, the study conducted a scenario analysis to evaluate the potential emission reduction and related welfare transformation efficiency. The scenario analysis reveals that households’ green electricity trading potentially contributes to 30%–54% of the carbon reduction and a reasonable trading mechanism could achieve emission reductions goal with less welfare loss. Finally, some policy implications are proposed, providing theoretical support for policy-makers.

Keywords: Willingness-to-pay; Renewable electricity; Carbon reduction; Green electricity trading; CVM; Welfare loss (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:174:y:2023:i:c:s030142152300037x

DOI: 10.1016/j.enpol.2023.113452

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