CLIMATE CHANGE AND HOUSEHOLD ELECTRICITY CONSUMPTION INEQUALITY IN CHINA

Dengke Chen, Shiyi Chen and Hao Jin
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Dengke Chen: School of Economics, Fudan University, Shanghai 200433, P. R. China
Shiyi Chen: School of Economics, Fudan University, Shanghai 200433, P. R. China
Hao Jin: ��School of Public Administration, Southwestern University of Finance and Economics, Chengdu 611130, P. R. China

Climate Change Economics (CCE), 2024, vol. 15, issue 02, 1-27

Abstract: Based on the micro-data of China’s Urban Household Survey, this paper investigates the impact of climate change on household electricity consumption inequality by using a two-way fixed effect model. The result reveals that households are more likely to purchase air conditioning (AC) and consume more electricity in response to extreme weather shocks. Furthermore, it is observed that high-income households are better equipped to mitigate the negative effects of extreme weather, as they possess a larger proportion of AC units and are more likely to acquire new ones to cope with extremely high temperatures. Finally, the study finds that extreme weather shocks exacerbate inequality in household electricity consumption.

Keywords: Climate change; climate mitigation; electricity consumption inequality (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1142/S2010007824400013

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