The influence of clan social capital on collective biogas investment

Abstract

PurposeThe purpose of this paper is to examine the influence of clan social capital on the willingness to pay (WTP) and WTP value for collective biogas investment.Design/methodology/approachUsing the Heckman two-stage model and a dataset of 1,265 representative observations from three provinces in Central China collected in 2019, this paper utilizes the contingent valuation method to estimate households' WTP value for collective biogas investment. The paper also explores the heterogeneity between households with different clan governance mechanisms and village governance structures.FindingsThe results indicate that clan networks and trust were likely to improve farmer households' WTP, while clan trust and norms could improve their WTP values. For clans with councils and for clans that can influence the decision-making of village committees, their members were more likely to be influenced by the social capital of their clans to pay for collective biogas investment.Originality/valueThis paper focuses on the WTP and WTP values of households for collective biogas investment, which is often neglected in the research. This paper suggests that clans can be used as a medium to urge households to increase their collective power to reduce carbon emissions and climate crises. The findings empirically contribute to efforts to reduce rural carbon emissions.