District heating versus self-heating: Estimation of energy efficiency gap using regression discontinuity design

This paper employs regression discontinuity design to estimate the impact of heating modes on residents’ energy consumption, energy efficiency gap, and energy usage behavior, using the Chinese Residential Energy Consumption Survey (CRECS). We find that district heating increases total energy consump...

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Main Authors: Jing Jin, Yucheng Wang, Xinye Zheng
Format: Article
Language:English
Published: KeAi Communications Co. Ltd. 2021-09-01
Series:China Economic Quarterly International
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2666933121000344
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author Jing Jin
Yucheng Wang
Xinye Zheng
author_facet Jing Jin
Yucheng Wang
Xinye Zheng
author_sort Jing Jin
collection DOAJ
description This paper employs regression discontinuity design to estimate the impact of heating modes on residents’ energy consumption, energy efficiency gap, and energy usage behavior, using the Chinese Residential Energy Consumption Survey (CRECS). We find that district heating increases total energy consumption and total heating expenditure. However, energy consumption and expenditure per unit of district heating are lower than self-heating, which means a positive energy efficiency gap between district heating and self-heating. With the estimates, we construct a model of household heating expenditure. The counterfactual simulation shows that district heating expenditure would be reduced by more than 35% if the heating fee is charged based on actual usage. We suggest government provide a quantity-based district heating service by implementing a two-part tariff pricing strategy.
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spelling doaj.art-75ac1e2d783c417c89e57c50d25f9dd82022-12-27T04:38:43ZengKeAi Communications Co. Ltd.China Economic Quarterly International2666-93312021-09-0113208220District heating versus self-heating: Estimation of energy efficiency gap using regression discontinuity designJing Jin0Yucheng Wang1Xinye Zheng2School of Economics, Renmin University of China, ChinaDepartment of Economics, University of Pittsburgh, USASchool of Applied Economics, Renmin University of China, China; Corresponding author. School of Applied Economics, Renmin University of China, Beijing, 100872, China.This paper employs regression discontinuity design to estimate the impact of heating modes on residents’ energy consumption, energy efficiency gap, and energy usage behavior, using the Chinese Residential Energy Consumption Survey (CRECS). We find that district heating increases total energy consumption and total heating expenditure. However, energy consumption and expenditure per unit of district heating are lower than self-heating, which means a positive energy efficiency gap between district heating and self-heating. With the estimates, we construct a model of household heating expenditure. The counterfactual simulation shows that district heating expenditure would be reduced by more than 35% if the heating fee is charged based on actual usage. We suggest government provide a quantity-based district heating service by implementing a two-part tariff pricing strategy.http://www.sciencedirect.com/science/article/pii/S2666933121000344Q40Q48D19
spellingShingle Jing Jin
Yucheng Wang
Xinye Zheng
District heating versus self-heating: Estimation of energy efficiency gap using regression discontinuity design
China Economic Quarterly International
Q40
Q48
D19
title District heating versus self-heating: Estimation of energy efficiency gap using regression discontinuity design
title_full District heating versus self-heating: Estimation of energy efficiency gap using regression discontinuity design
title_fullStr District heating versus self-heating: Estimation of energy efficiency gap using regression discontinuity design
title_full_unstemmed District heating versus self-heating: Estimation of energy efficiency gap using regression discontinuity design
title_short District heating versus self-heating: Estimation of energy efficiency gap using regression discontinuity design
title_sort district heating versus self heating estimation of energy efficiency gap using regression discontinuity design
topic Q40
Q48
D19
url http://www.sciencedirect.com/science/article/pii/S2666933121000344
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AT yuchengwang districtheatingversusselfheatingestimationofenergyefficiencygapusingregressiondiscontinuitydesign
AT xinyezheng districtheatingversusselfheatingestimationofenergyefficiencygapusingregressiondiscontinuitydesign