Do extreme temperatures exacerbate residential energy expenses burden in China?

Abstract

Extreme weather outcomes induced by climate change have been academically confirmed, but the substantial impact on residents is less paid attention to, especially from the aspects of energy expenses burden. Based on multi-annual survey data, we identify how the temperature changes affect Chinese household energy expenditure burden. After the fixed-effects panel model estimating, some unique findings are obtained: (1) The rising frequency of extreme temperatures significantly augment the electricity and energy expenditure burden for Chinese households. With the annual rise in the number of extreme temperature days, the demand for both heating and cooling among residents correspondingly escalates. (2) The impact of temperature extremes across different regions and socio-economic groups are heterogeneous, with rural, northern and low-income households experiencing higher influence of temperature extremes on energy expenses burden. (3) The influence of extreme temperatures is asymmetric. Extreme high temperatures have a stronger impact on energy burden compared to extreme low temperatures. The compounded effects of numerous extreme temperature days and heavy energy expenditure burden significantly magnify the impacts of weather on households. According to these conclusions, policy suggestions are proposed to mitigate household energy expenses burden.