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Warmer temperatures and energy poverty: Evidence from Chinese households

Author

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  • Li, Xue
  • Smyth, Russell
  • Xin, Guangyi
  • Yao, Yao
Abstract
We estimate the casual effect of warmer temperatures on energy poverty in China using a nationally representative household survey from 2014 to 2018. Exploiting daily mean temperatures over the 12 months preceding the interview, we find that warmer temperatures increase energy poverty at the intensive and extensive margins. We find evidence of seasonal effects and that it is unusually warmer springs, rather than hotter summers, that are responsible for our results. We decompose the energy poverty result into the effect of temperature on energy expenditure and the effect of temperature on income. Our results suggest that both channels operate via heat stress, but not cold stress, and that the income channel is relatively more important. We show that one reason why warmer temperatures increase expenditure on energy is that on hotter days households shift leisure activities inside in order to cope with heat stress; hence, consuming more energy.

Suggested Citation

  • Li, Xue & Smyth, Russell & Xin, Guangyi & Yao, Yao, 2023. "Warmer temperatures and energy poverty: Evidence from Chinese households," Energy Economics, Elsevier, vol. 120(C).
  • Handle: RePEc:eee:eneeco:v:120:y:2023:i:c:s0140988323000737
    DOI: 10.1016/j.eneco.2023.106575
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    3. Adriana Grigorescu & Camelia Speranta Pirciog & Cristina Lincaru, 2024. "Space–Time Forecasting of Heating & Cooling Energy Needs as an Energy Poverty Measure in Romania," Energies, MDPI, vol. 17(20), pages 1-19, October.
    4. Moteng, Ghislain & Raghutla, Chandrashekar & Njangang, Henri & Nembot, Luc Ndeffo, 2023. "International sanctions and energy poverty in target developing countries," Energy Policy, Elsevier, vol. 179(C).
    5. Zhang, Guoxing & Shen, Lin & Su, Bin, 2023. "Temperature change and daily urban-rural residential electricity consumption in northwestern China: Responsiveness and inequality," Energy Economics, Elsevier, vol. 126(C).
    6. Shakya, Lumana, 2024. "Climate Change and Energy Poverty in Bangladesh," 2024 Annual Meeting, July 28-30, New Orleans, LA 343824, Agricultural and Applied Economics Association.
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    8. Kristian Fabbri & Lia Marchi & Ernesto Antonini & Jacopo Gaspari, 2023. "Exploring the Role of Building Envelope in Reducing Energy Poverty Risk: A Case Study on Italian Social Housing," Energies, MDPI, vol. 16(24), pages 1-22, December.

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    More about this item

    Keywords

    Energy poverty; Climate change; Household panel;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • D10 - Microeconomics - - Household Behavior - - - General

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