Household energy transition and social status: evidence from large-scale heating renovation in China

Abstract

Clean, low-carbon energy transition has been a global trend in pursuing climate mitigation and sustainable development, with residential heating being an essential component. Despite its substantial climate, environmental, and health benefits, the social impacts of residential energy transition are insufficiently understood. Based on a difference-in-differences design, we identify the causal effects of a large-scale clean heating policy on public perceptions of their social status in northern China. We find substantial improvement in individuals’ social status immediately following the heating renovation, which is robust over a set of empirical specifications but diminishes in the long term. The transition benefited not only those directly experiencing renovation but also others in the same areas. The improved social status was driven by perception of higher income and bettered health condition. The findings indicate a sustainable and inclusive transition of clean heating, and call for additional measures to maximize its social benefits.