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Household fuel choice in urban China: A random effect generalized probit analysis

Xiao-Bing Zhang () and Sied Hassen ()

No 595, Working Papers in Economics from University of Gothenburg, Department of Economics

Abstract: Using seven rounds of household survey data that span more than a decade, this paper analyzes the determinants of household fuel choice in urban China. Unlike the existing studies, we use an empirical strategy that takes into account the potential heterogeneous effects of socio-economic factors in households’ preference ordering. Robustness of this empirical strategy is checked against alternative methods. The results show that household fuel choice in urban China is related to fuel prices, household’s economic status and size, and household head’s gender, education and occupation. Our results suggest that policies and interventions that raise household income, reduce prices of clean fuel sources, and empower women in the household are of great significance in encouraging the adoption of clean energy sources.

Keywords: Household fuel choice; Panel data; Random effect generalized probit model; Urban China (search for similar items in EconPapers)
JEL-codes: C25 Q23 Q40 Q42 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dcm, nep-ene, nep-res and nep-tra
Date: 2014-05
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:gunwpe:0595

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