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

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  • Zhang, Xiao-Bing

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Hassen, Sied

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

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.

Suggested Citation

  • Zhang, Xiao-Bing & Hassen, Sied, 2014. "Household fuel choice in urban China: A random effect generalized probit analysis," Working Papers in Economics 595, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0595
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    File URL: https://gupea.ub.gu.se/handle/2077/35817
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    References listed on IDEAS

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    Cited by:

    1. Bingdong Hou & Xin Tang & Chunbo Ma & Li Liu & Yi-Ming Wei & Hua Liao, 2018. "Cooking fuel choice in rural China: results from microdata," CEEP-BIT Working Papers 110, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    2. Muller, Christophe & Yan, Huijie, 2018. "Household fuel use in developing countries: Review of theory and evidence," Energy Economics, Elsevier, vol. 70(C), pages 429-439.
    3. Liao, Hua & Tang, Xin & Wei, Yi-Ming, 2016. "Solid fuel use in rural China and its health effects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 900-908.

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    More about this item

    Keywords

    Household fuel choice; Panel data; Random effect generalized probit model; Urban China;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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