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Policy implications of the purchasing intentions towards energy-efficient appliances among China’s urban residents: Do subsidies work?

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  • Wang, Zhaohua
  • Wang, Xiaomeng
  • Guo, Dongxue

Abstract

Incentive policies are always used to sway purchase, retail stocking, and production decisions toward energy-efficient products by many countries or regions. So the effectiveness of such subsidies has been of much concern to scholars. This research focused on whether, or not, subsidy policies have guided people's intentions and behaviours. We investigated 436 urban residents from 22 provinces in China, covering the seven major geographic regions, and made an empirical analysis of the factors influencing Chinese urban residents’ purchasing intentions towards energy-efficient appliances based on the structural equation model. On theoretical aspect, we developed the theory of planned behaviour. Our results show that the variable “POLICY” is insignificant which indicates that policy environment and media propaganda in China do not have significant effect on Chinese residents’ willingness to pay for energy-efficient appliances. While, the residents’ environmental awareness, past purchasing experiences, social relationships, age, and level of education all exert a significant influence on Chinese residents’ purchasing intentions. Finally, based on the above research results, the corresponding policy suggestions which mainly focus on the time of subsidy, the object of subsidy and the method of subsidy are offered for policy makers.

Suggested Citation

  • Wang, Zhaohua & Wang, Xiaomeng & Guo, Dongxue, 2017. "Policy implications of the purchasing intentions towards energy-efficient appliances among China’s urban residents: Do subsidies work?," Energy Policy, Elsevier, vol. 102(C), pages 430-439.
    • Handle: RePEc:eee:enepol:v:102:y:2017:i:c:p:430-439
    DOI: 10.1016/j.enpol.2016.12.049
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    References listed on IDEAS

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