Exploring the role of environmental regulations in biogas development in China, from the perspective of peer effect

Yanjiao Li, Chen Qing, Wenfeng Zhou and Dingde Xu

Energy, 2025, vol. 315, issue C

Abstract: Popularizing biogas in rural contributes to the achievement of several Sustainable Development Goals. Focusing on the regulation-driven tendency of biogas, this study outlines the biogas promotion policies in China. On this basis, this study combines the theory of institutional economics and successfully constructs an integrated theoretical framework of environmental regulations (ER) and peer effect (PE). Finally, the study empirically tests the moderating effect of PE in ER influencing farmers' use of biogas, using Sichuan, China as an example. The study finds that the effectiveness of ER in promoting farmers' use of biogas is very limited, with only the incentive environmental regulation (IER) having a significant positive effect among the guiding environmental regulation (GER), IER, and constrained environmental regulation (CER), suggesting a relative institutional failure of current ER. Surprisingly, the PE is an endogenous informal force of farmers in biogas diffusion, which has a significant favorable effect on farmers' use of biogas and moderates the effectiveness of ER, as it enhances the effect of GER and replaces the effect of CER, although this process will vary according to the geographical location and income of farmers.

Keywords: Biogas; Environmental regulation; Peer effect; Interaction; China (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:315:y:2025:i:c:s0360544225000350

DOI: 10.1016/j.energy.2025.134393

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