Scandinavian Working Papers in Economics
Working Papers in Economics,
University of Gothenburg, Department of Economics
No 595: Household fuel choice in urban China: A random effect generalized probit analysis
Xiao-Bing Zhang () and Sied Hassen ()
Additional contact information
Xiao-Bing Zhang: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 Gothenburg, Sweden
Sied Hassen: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 Gothenburg, Sweden
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.
Keywords: Household fuel choice; Panel data; Random effect generalized probit model; Urban China
39 pages, May 2014
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