Cost–Benefit Analysis of the China’s Household Coal-to-Electricity Transition: A Case Study on the Beijing Mentougou Area

Since 2013, China has implemented clean heating projects such as the coal-to-electricity project to reduce emissions and improve air quality in northern China, but it still requires significant investment from governments, businesses, and households. However, the benefits of coal-to-electricity to i...

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Main Authors: Yanran Pan, Lei Jiang, Hui Wang
Format: Article
Language:English
Published: MDPI AG 2024-11-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/17/23/5933
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author Yanran Pan
Lei Jiang
Hui Wang
author_facet Yanran Pan
Lei Jiang
Hui Wang
author_sort Yanran Pan
collection DOAJ
description Since 2013, China has implemented clean heating projects such as the coal-to-electricity project to reduce emissions and improve air quality in northern China, but it still requires significant investment from governments, businesses, and households. However, the benefits of coal-to-electricity to improve the rural family environment have received less attention. In this study, we conducted a cost–benefit analysis of the coal-to-electricity transition in Beijing’s Mentougou District from 2013 to 2017, distinguishing private costs and benefits, government costs and public benefits, and social costs and benefits. The results show that for all coal-to-electricity households, the private benefits far outweigh the private costs, with a benefit–cost ratio of 15.9. The government costs outweigh the benefit of air pollutants and carbon dioxide emission reduction, with a benefit–cost ratio of 0.4. Overall, the social benefits outweigh the social costs: the benefit–cost ratio for society was 2.2. The environmental benefits of the coal-to-electricity policies did not offset the large amount of investment of the government, but society received a positive net benefit owing to the large benefits gained by rural households. This also proves that the investment by the government is efficient and verifies the government’s next step to continue to promote the coal-to-electricity transition.
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series Energies
spelling doaj-art-d1803974a44b4905810e948e055d1dfa2024-12-13T16:25:27ZengMDPI AGEnergies1996-10732024-11-011723593310.3390/en17235933Cost–Benefit Analysis of the China’s Household Coal-to-Electricity Transition: A Case Study on the Beijing Mentougou AreaYanran Pan0Lei Jiang1Hui Wang2School of Economics and Management, Beijing Forestry University, Beijing 100083, ChinaEcology and Environment Bureau of Mentougou District of Beijing Municipality, Beijing 100041, ChinaSchool of Economics and Management, Beijing Forestry University, Beijing 100083, ChinaSince 2013, China has implemented clean heating projects such as the coal-to-electricity project to reduce emissions and improve air quality in northern China, but it still requires significant investment from governments, businesses, and households. However, the benefits of coal-to-electricity to improve the rural family environment have received less attention. In this study, we conducted a cost–benefit analysis of the coal-to-electricity transition in Beijing’s Mentougou District from 2013 to 2017, distinguishing private costs and benefits, government costs and public benefits, and social costs and benefits. The results show that for all coal-to-electricity households, the private benefits far outweigh the private costs, with a benefit–cost ratio of 15.9. The government costs outweigh the benefit of air pollutants and carbon dioxide emission reduction, with a benefit–cost ratio of 0.4. Overall, the social benefits outweigh the social costs: the benefit–cost ratio for society was 2.2. The environmental benefits of the coal-to-electricity policies did not offset the large amount of investment of the government, but society received a positive net benefit owing to the large benefits gained by rural households. This also proves that the investment by the government is efficient and verifies the government’s next step to continue to promote the coal-to-electricity transition.https://www.mdpi.com/1996-1073/17/23/5933coal-to-electricityclean heating programcosts and benefitshousehold energy usegovernment subsidychoice experiment approach
spellingShingle Yanran Pan
Lei Jiang
Hui Wang
Cost–Benefit Analysis of the China’s Household Coal-to-Electricity Transition: A Case Study on the Beijing Mentougou Area
Energies
coal-to-electricity
clean heating program
costs and benefits
household energy use
government subsidy
choice experiment approach
title Cost–Benefit Analysis of the China’s Household Coal-to-Electricity Transition: A Case Study on the Beijing Mentougou Area
title_full Cost–Benefit Analysis of the China’s Household Coal-to-Electricity Transition: A Case Study on the Beijing Mentougou Area
title_fullStr Cost–Benefit Analysis of the China’s Household Coal-to-Electricity Transition: A Case Study on the Beijing Mentougou Area
title_full_unstemmed Cost–Benefit Analysis of the China’s Household Coal-to-Electricity Transition: A Case Study on the Beijing Mentougou Area
title_short Cost–Benefit Analysis of the China’s Household Coal-to-Electricity Transition: A Case Study on the Beijing Mentougou Area
title_sort cost benefit analysis of the china s household coal to electricity transition a case study on the beijing mentougou area
topic coal-to-electricity
clean heating program
costs and benefits
household energy use
government subsidy
choice experiment approach
url https://www.mdpi.com/1996-1073/17/23/5933
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AT leijiang costbenefitanalysisofthechinashouseholdcoaltoelectricitytransitionacasestudyonthebeijingmentougouarea
AT huiwang costbenefitanalysisofthechinashouseholdcoaltoelectricitytransitionacasestudyonthebeijingmentougouarea