Abstract
Adoption of renewable energy such as solar energy has been recognized as an important way to reduce rural carbon emissions and enrich the energy supply of rural households in China. Using a survey sample of 972 rural residents from Jiangxi Province in South China, this study investigates the factors that affect individual rural resident decisions on whether to adopt solar water heaters and the levels of usage after adoption. Unlike previous studies, this study assumes the two decisions are sequential and addresses them with a Heckman model approach. Results show that geographic factors, household attributes, and resident characteristics play different roles in the two stages of the decision process. The awareness of the subsidy policy is crucial in determining whether to adopt, while the awareness of solar water heater technology influences the usage level. These results provide useful insights to identify effective policy instruments to promote renewable energy use in rural China.
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