Heating choices and residential willingness to pay for clean heating: Evidence from a household survey in rural China

Due to the severity of climate change, the Chinese government has committed to the carbon neutrality target. Winter heating is a major source of carbon emissions in northern China, and it is urgent to promote the adoption of clean heating in northern rural areas. With indoor-survey data, both two-stage regression and structural equation modeling were used in this study to figure out the exact driving factors and causal relationships of rural households' energy choices considering subjective factors that may influence the energy choices and willingness to pay. Results contradict the energy ladder hypothesis and conclude that it might be caused by energy consumption habits and fuel stacking strategy. Both demographic characteristics and education level have a significant effect on heating energy choices. As for residents' willingness to pay for clean heating, it shows that households’ environmental perceptions, socioeconomic status, and demand for policy subsidies play an important role. Our results make a strong case for policies that shape residents' low-carbon values, promote technological innovation in clean energy, and set reasonable subsidies for clean heating to encourage a clean heating transition.