Low-quality or high-quality coal? Household energy choice in rural Beijing

Abstract

Household low-quality coal consumption contributes to severe haze pollution in China. In response, subsidy policies on high-quality coal consumption and the adoption of new-type coal stoves have been implemented. Using survey data in rural Beijing, this paper characterizes the determinants of coal consumption and switching behavior between low-quality and high-quality coals. To this end, we apply bivariate probit regression and Tobit regression to evaluate the effectiveness of government policies and the influence of cognitive & psychological and socioeconomic factors on coal consumption behaviors. Our empirical results reveal that prosociality and local environmental concern play crucial roles in household choices and consumption behaviors between two types of coals, but global environmental concern does not. The promotion of new-type coal stoves significantly facilitates the transition from low-quality to high-quality coal, while price subsidies on high-quality coal do not influence market acceptance of high-quality coal. These results demonstrate the importance of cognitive & psychological factors and promotion policies on coal consumption behavior. Overall, we suggest that an education campaign or program regarding local environmental awareness, prosocial values and behaviors and on new-type coal stoves should be further promoted to accelerate the transition from low-quality to high-quality coal.