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Evaluating socio-economic and subjective well-being impacts of coal power phaseout in China
Shuaizhi Gao1,2, Peng Zhou3,4, Hongyan Zhang5,6
1School of Economics and Management, China University of Petroleum (East China), Qingdao, P. R. China.
Abstract:
Over the past decade, China has undergone an ambitious coal power phaseout that has induced a set of socio-economic rearrangements. To provide new insights into the socio-economic effects of this phaseout in addressing global climate change, we conducted an empirical analysis at both the macro and micro levels in China from 2014 to 2020. We found that the negative impacts of this phaseout led to 3.1% and 1.9% decreases in annual income for rural and urban populations, respectively. Despite facing macro-economic challenges, individuals report overall increased levels of happiness and life satisfaction. Collectively, these findings reveal a phenomenon in which macro socio-economic performance and subjective well-being (SWB) are driven in different directions during the phaseout. Our study uncovers potential socio-economic injustices as well as opportunities in the context of the coal power phaseout, highlighting the importance of flexibility in designing decarbonization strategies.
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