Do social assistance programs promote the use of clean cooking fuels? Evidence from China's new rural pension scheme

Abstract

Government social assistance programs play a vital role in shaping household behaviors, from food purchases to human capital investments. Yet, little attention has been given to understanding the impacts of these programs on household energy choices. Drawing upon data from China's New Rural Pension Scheme (NRPS) – a cash transfer plan targeting rural seniors aged 60 and above – this study aims to shed light on how such a program affects the cooking fuel choices among beneficiaries. The results show that: (1) the NRPS promotes a shift from traditional biomass fuels to cleaner fuels, primarily driven by reduced firewood adoption and increased electricity usage; (2) the effects are stronger for lower-income households and the older age group (aged 70 and above); (3) enhancing household income and discouraging farm work participation are possible mechanisms through which pension coverage influences fuel choices. Overall, these findings highlight the effectiveness of social assistance programs in improving resident well-being and facilitating energy transitions in rural areas.