Impact of energy affordability on the decision-making of rural households in ecologically fragile areas of Northwest China regarding clean energy use

Abstract

Background

Highly carbonized energy use in ecologically fragile areas of Northwest China seriously endangers the health of residents and the ecological environment. However, poor energy affordability remains a major obstacle to the promotion of clean energy use in rural households in this region.

Methods

Based on survey data of 1118 households in ecologically fragile areas of Northwest China, this study constructed a household-level database of energy use, measured energy affordability in two dimensions: endogenous income (annual per capita household income) and external inputs (government energy subsidies). It uses logistic and threshold regression to empirically test the impact, threshold, and heterogeneity of energy affordability on the decision-making of rural households regarding clean energy use for cooking, heating, and heating water.

Results

(1) The energy use structures of rural households in different ecologically fragile areas differ because of different household characteristics. (2) Energy affordability affects cooking significantly more than it affects heating and subsidy growth is a stronger incentive than income growth. Moreover, for both cooking and heating, energy affordability has a greater impact on electricity use than on gas use. (3) The thresholds for energy transformation for heating are greater than those for cooking and heating water. When the subsidy increases by 2400 yuan/year, heating can catch up to other types of use, whereas, based on the current level of income growth, it requires more than 5 years. (4) This effect is higher in high-income, purely agricultural, highly educated, young, and middle-aged households.

Conclusions

Promoting the use of clean energy in rural households only by increasing income will be a slow process. Subsidies should be used to accelerate this process by improving the energy affordability of rural households and a compensation policy should be implemented considering the energy types and periods. Taking into account the differences in the basic characteristics of rural households in different ecologically fragile areas, clean energy policies should be adopted from various perspectives to better leverage the enhancement effect of energy affordability.