Economics at your fingertips  

Electricity demand and basic needs: Empirical evidence from China's households

Xiaoping He and David Reiner ()

Energy Policy, 2016, vol. 90, issue C, 212-221

Abstract: An increasing block tariff (IBT) has been implemented nationwide in the residential sector in China since 2012. However, knowledge about IBT design is still limited, particularly how to determine the electricity volume for the first block of an IBT scheme. Assuming the first block should be set based on some measure of electricity poverty; we attempt to model household electricity demand such that the range of basic needs can be established. We show that in Chinese households there exists a threshold for electricity consumption with respect to income, which could be considered a measure of electricity poverty, and the threshold differs between rural and urban areas. For rural (urban) families, electricity consumption at the level of 7th (5th) income decile households can be considered the threshold for basic needs or a measure of electricity poverty since household electricity demand in rural (urban) areas does not respond to income changes until after 7th (5th) income decile. Accordingly, the first IBT block for some provinces (e.g., Beijing) appears to have been set at a level that is too high. Over time however, given continued rapid growth, the IBT will begin to better reflect actual basic needs.

Keywords: Electricity; Household; Basic needs; Quantile regression (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Electricity Demand and Basic Needs: Empirical Evidence from China’s Households (2014) Downloads
Working Paper: Electricity Demand and Basic Needs: Empirical Evidence from China's Households (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.enpol.2015.12.033

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Haili He ().

Page updated 2020-08-06
Handle: RePEc:eee:enepol:v:90:y:2016:i:c:p:212-221