Key Factors of Rural Households’ Willingness to Pay for Cleaner Heating in Hebi: A Case Study in Northern China

Abstract

As coal-fired heating in winter in rural areas of northern China exacerbates air pollution, promoting cleaner heating transition is of significance for environmental sustainability. However, this is difficult as intentions and actions of rural households are deficient. This case study in northern China aims to estimate rural households’ willingness to pay (WTP) for facilities and energy for cleaner heating and explore its key factors. The survey-based analysis found that the total annual WTP for cleaner heating (sum of the WTP for heating facilities and energy per year) varied from RMB 250 to RMB 6800 (RMB 100 ≈ USD 15 in 2018), with a quite low average and a huge difference. The variation of the WTP can be attributed to economic and demographic features and environmental attitudes of households. Improvement of household income and environmental concern will enhance the WTP for cleaner heating, but a high vacancy rate and aging population in rural areas will generally inhibit it. Based on this study, some policy suggestions were proposed to promote cleaner heating transition in rural households; specifically, more attention should be paid to the poor and aged households.