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A quantile approach to assess the effectiveness of the subsidy policy for energy-efficient home appliances: Evidence from Rizhao, China

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  • Yao, Xi-Long
  • Liu, Yang
  • Yan, Xiao

Abstract

A one-year subsidy program for energy-efficient home appliances has been implemented in China. We construct a dataset consisting of participant and non-participant households in both urban and rural areas of Rizhao city. By applying a quantile regression and counterfactual analysis, this study disentangles the impact of this subsidy program and inherent household attributes on per capita residential electricity consumption. First, contrary to the mean regression, the elasticity of electricity consumption to household׳s income, age, education and energy-saving awareness, varies markedly across the electricity consumption distribution and shows discrepancy between urban and rural areas. Second, while inherent household attributes are identified as a primary determinant to the changes in residential electricity consumption, the effect induced by the subsidy incentive is more significant at the middle of the electricity consumption distribution than at the tails. Third, there are significant rebound effects that lead to overall increase in household electricity consumption. Our results suggest that the disparity between urban and rural regions and targeted consumer behavior changes should be taken into account to ensure the effectiveness of a future energy-efficient subsidy program.

Suggested Citation

  • Yao, Xi-Long & Liu, Yang & Yan, Xiao, 2014. "A quantile approach to assess the effectiveness of the subsidy policy for energy-efficient home appliances: Evidence from Rizhao, China," Energy Policy, Elsevier, vol. 73(C), pages 512-518.
    • Handle: RePEc:eee:enepol:v:73:y:2014:i:c:p:512-518
    DOI: 10.1016/j.enpol.2014.06.010
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    5. Wang, Yao & Lin, Boqiang & Li, Minyang, 2021. "Is household electricity saving a virtuous circle? A case study of the first-tier cities in China," Applied Energy, Elsevier, vol. 285(C).
    6. Zha, Donglan & Yang, Guanglei & Wang, Wenzhong & Wang, Qunwei & Zhou, Dequn, 2020. "Appliance energy labels and consumer heterogeneity: A latent class approach based on a discrete choice experiment in China," Energy Economics, Elsevier, vol. 90(C).
    7. Victor Champonnois & Olivier Chanel, 2016. "How useful are (Censored) Quantile Regressions for Contingent Valuation?," Working Papers 2016.12, FAERE - French Association of Environmental and Resource Economists.
    8. Frondel, Manuel & Sommer, Stephan & Vance, Colin, 2019. "Heterogeneity in German Residential Electricity Consumption: A quantile regression approach," Energy Policy, Elsevier, vol. 131(C), pages 370-379.
    9. Nie, Pu-yan & Yang, Yong-cong & Chen, You-hua & Wang, Zhao-hui, 2016. "How to subsidize energy efficiency under duopoly efficiently?," Applied Energy, Elsevier, vol. 175(C), pages 31-39.
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    11. Dissemin, uploaded via & Nauleau, Marie-Laure & Giraudet, Louis-Gaëtan & Quirion, Philippe, 2018. "Energy efficiency subsidies with price-quality discrimination," OSF Preprints 5emgn, Center for Open Science.
    12. Nie, Pu-Yan & Wang, Chan & Yang, Yon-Cong, 2017. "Comparison of energy efficiency subsidies under market power," Energy Policy, Elsevier, vol. 110(C), pages 144-149.
    13. Qingsong Wang & Ping Liu & Xueliang Yuan & Xingxing Cheng & Rujian Ma & Ruimin Mu & Jian Zuo, 2015. "Structural Evolution of Household Energy Consumption: A China Study," Sustainability, MDPI, vol. 7(4), pages 1-14, April.
    14. Gongyi Zhang & Chang Zhang & Hongguang Nie, 2021. "An Overview of China’s Energy Labeling Policy Portfolio: China’s Contribution to Addressing the Global Goal of Sustainable Development," SAGE Open, , vol. 11(1), pages 21582440209, January.
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