Subjective Well-being Effects for Electric Power Universal Service Recipients in China from a Culture Poverty Perspective

Abstract

Lack of cultural knowledge, poor livelihood and inappropriate value orientation of electric power universal service recipient groups basically influence their electricity consumption habit in china. In order to assess the effect of power universal service distribution and measure the welfare of recipient groups, this paper researches individual electricity consumption mentality and behavior through behavioral economics theory, establishes a subjective welfare function tracing recipient individual based on cumulative prospect theory , constructs the recipient groups’ subjective welfare function following the traditional social welfare function and researches the influence of the changes of psychological reference points. Through example analysis combined with function feasibility, this paper proves the subjective well-being effect of recipient groups declines when the psychological reference point increases.