The research aims to determine the nexus of energy projects retrofit and poverty under two scenarios: energy project cost estimation and energy price determination. Households in rural areas of northern China are now required to switch from coal to cleaner heating options, including natural gas and electricity, as part of a government-led clean heating initiative. This initiative significantly increased the heating expense for participating homes, even when substantial subsidies were applied. We surveyed a large number of northern Chinese households to learn more about the rise in energy insecurity that has been attributed to government action. Our research shows that switching to electricity and gas from coal considerably worsens energy poverty in several ways, whereas switching to clean coal improves the situation. According to an econometric study, changes in energy poverty reveal heterogeneity in several ways. There is little change in Beijing, while the considerably less developed province of Hebei to the north sees a 75% rise. Energy poverty is more common in families with poorer incomes, lower levels of education, and smaller sizes. People who lack resources to insulate their homes will feel the effects more acutely. These results support the idea that low-income families would suffer disproportionately under a "one policy for all" mandate. For policymakers working on energy transition strategies for a low-carbon economy, it highlights the need to consider the distributional impact.
Keywords: China; Energy financing; Energy poverty; Energy price; Energy project cost; Energy project retrofit.
© 2023. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.