Who benefits from household energy transition? A cost-benefit analysis based on household survey data in China

Aiming to alleviate air pollution and carbon emissions from heating, Northern China mandatorily converted household heating energy from coal to electricity (Coal to Electricity), natural gas (Coal to Gas), and clean coal (Clean Coal Replacement). Based on large-scale household survey data in Beijing, this study provides a cost-benefit analysis of the transition program and distinguishes between social and private benefits. The results show that all three programs improve the welfare of society and households. Compared to the Clean Coal Replacement program, Coal to Electricity and Coal to Gas programs provide higher environmental benefits while bringing about larger costs, and thus the benefit-to-cost ratios are lower. We also find that private net benefits are lower than social net benefits, and household satisfaction with the programs is positively determined by private net benefits rather than social net benefits. Furthermore, households with lower income and larger housing areas are more likely to be harmed by the programs by a larger burden from the heating energy transition. These findings call attention to inequity issues during the household energy transition.