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Guiding clean energy transitions in rural households: Insights from China's pilot low-carbon policies
Zhichao Li1, Fanchen Meng2, Shaohui Wu1
1School of Economics, Beijing Institute of Technology, Beijing, 100081, China.
Abstract:
The impact of Low Carbon Pilot Policies (LCPPs) on carbon reduction and energy efficiency has been extensively studied. However, the potential of these policies to promote clean energy transition (CET) in rural households remains underexplored. This article constructed a staggered-DID model using data from the China Family Panel Studies (CFPS) to investigate the impact and mechanisms of LCPPs on rural households' CET. The findings indicate that LCPPs significantly enhance the CET among rural households. Moreover, the effects of LCPPs vary across cities, while differences within communities and households are less pronounced. Mechanism analysis reveals that LCPPs facilitate rural households' CET through income effects, infrastructure improvements, and enhanced low-carbon awareness. Notably, the income and low-carbon awareness effects are heterogeneous. Additionally, LCPPs have increased rural households' expenditures on home-cooked meals. We estimate the average fixed cost of the CET for rural households to be approximately $404.495. These insights provide valuable empirical evidence that can guide other countries and regions in promoting CET in rural areas.
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