Biomass Energy Economics and Rural Livelihood in Sichuan, China

by Qiu Chen (Author)
©2018 Thesis 192 Pages


This book presents a study focusing on household biomass energy use and its impacts on livelihoods in rural China. It advances the literature by triangulating the existing econometric approaches to robustly analyze energy using behaviors at the micro level. Based on a developed agricultural household model, it firstly investigates the determinants of household energy choice behaviors by analyzing household revealed and stated preferences. On the production side, it tests the competition between biomass collection and agricultural production by estimating the profit function. And finally, it examines the effects of price changes in exogenous markets on household biomass energy using behaviors by jointly estimating household consumption, production and labor allocation decisions.

Table Of Contents

  • Cover
  • Title
  • Copyright
  • About the author(s)/editor(s)
  • About the book
  • This eBook can be cited
  • Table of Contents
  • Abstract
  • Zusamenfassung
  • List of Tables
  • List of Figures
  • Acknowledgements
  • Abbreviations
  • Chapter 1 Introduction
  • 1.1 Research Background
  • 1.2 Problem Statement
  • 1.3 Context of the Study Region
  • 1.3.1 Socioeconomic Status of Rural Sichuan
  • 1.3.2 Status of energy consumption in rural Sichuan Province
  • 1.3.3 Policy Background for Rural Biomass Energy Construction in Sichuan
  • 1.4 Research Objectives and Questions
  • 1.5 Conceptual Framework
  • 1.6 Data
  • 1.6.1 Sampling procedures
  • 1.6.2 Sample description
  • 1.7 Main Contributions of the Thesis
  • 1.8 Organization of the Thesis
  • Chapter 2 Analytical Framework
  • 2.1 An Agricultural Household Model
  • 2.2 Household Energy Choice and Its Determinants
  • 2.3 The Impacts of Biomass Collection on Agricultural Production
  • 2.4 The Impacts of Household Biomass Energy Utilization Behaviors on Rural Livelihood
  • 2.4.1 Impacts of Biomass Energy Utilization on Rural Livelihood in a Separable Agricultural Household Model
  • 2.4.2 Impacts of Biomass Energy Utilization on Rural Livelihood in a Non-separable Agricultural Household Model
  • 2.5 Conclusion
  • Chapter 3 Household Biomass Energy Choice for Cooking in Energy Transition and Its Impacts on Rural Livelihoods
  • 3.1 Introduction
  • 3.2 Literature Review on Economics of Energy Choices
  • 3.3 Household Cooking Energy Use in Study Region
  • 3.4 Empirical Strategy
  • 3.4.1 Revealed and Stated Preferences
  • 3.4.2 Model Specification
  • 3.5 Empirical Analysis
  • 3.5.1 Revealed Preference (RP) Analysis
  • 3.5.2 Stated Preference (SP) Analysis
  • 3.5.3 Joint estimation of RP-SP data
  • 3.6 Conclusion
  • Chapter 4 Evaluating the Impacts of Biomass Collection on Agricultural Production
  • 4.1 Introduction
  • 4.2 Literature Review
  • 4.3 Biomass Collection and Its Impacts on Agricultural Production in Study Region
  • 4.3.1 Research Context in Sichuan Province
  • 4.3.2 Biomass Collection and Agricultural Production: Preliminary Data Analysis
  • 4.4 Empirical Analysis
  • 4.4.1 Estimating Shadow Wage and Shadow Price
  • 4.4.2 Estimating Profit Function
  • 4.5 Conclusion
  • Chapter 5 Impacts of the Changes in Exogenous Markets on Household Biomass Energy Use
  • 5.1 Introduction
  • 5.2 Descriptive analysis
  • 5.2.1 Context of Household Energy Consumption
  • 5.2.2 Varable Description
  • 5.3 Separability
  • 5.3.1 Model Specification
  • 5.3.2 Data and Estimation
  • 5.4 Household Behavior Analysis
  • 5.4.1 Shadow Wage and Shadow Price Estimation
  • 5.4.2 Household Consumption Decisions
  • 5.4.3 Household Labor Supply
  • 5.5 Household Biomass Energy Use Responses to the Changes in Exogenous Markets
  • 5.6 Conclusion
  • Chapter 6 Conclusions and Policy Implications
  • 6.1 Conclusions
  • 6.1.1 Biomass Energy Choice in Energy Transition and Its Determinants
  • 6.1.2 Impacts of Biomass Collection on Agricultural Production
  • 6.1.3 Biomass Energy Use Responses of Households to the Exogenous Market
  • 6.2 Policy Implications
  • 6.2.1 Adjust Energy Price and Improve Energy Quality
  • 6.2.2 Enhancing Households’ Access to Modern Fuels
  • 6.2.3 Eliminating the Market Faliures
  • 6.2.4 Increasing Attention to Regional Differences
  • References
  • Appendix
  • Series index

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List of Tables

Table 1.1 Selected socioeconomic indicators for Sichuan Province

Table 1.2 General characteristics of sampled households

Table 3.1 Comparison of characteristics of households choosing four different energy alternatives

Table 3.2 Description of explanatory variables used in asclogit model for RP data

Table 3.3 Estimation results of asclogit model for RP data

Table 3.4 Marginal effects of key influencing factors in RP asclogit model

Table 3.5 Assignment of levels and labels for attributes in cooking energy choice experiments

Table 3.6 A sample of a choice set in the choice experiment

Table 3.7 Description of explanatory variables used in asclogit model for SP data

Table 3.8 Estimation results of asclogit model for SP data

Table 3.9 Marginal effects of key influencing factors in SP asclogit model

Table 3.10 Joint estimation results of the combination of RP and SP data

Table 4.1 General information of household participation in agricultural production and biomass collection in study region

Table 4.2 General information of households collecting biomass

Table 4.3 Descriptive information of household members who are mainly responsible for biomass collection

Table 4.4 Description of household characteristics and variables used in model estimation

Table 4.5 Multivariate Probit Estimates of household participation functions of agricultural production, biomass collection and off-farm work

Table 4.6 Estimation results of the system of production functions using IT3SLS ← 13 | 14 →

Table 4.7 Data and variables used in estimating SNQ profit function

Table 4.8 Estimated price elasticities of outputs and inputs

Table 5.1 Energy consumption status of sampled households (Kgsce per year per household)

Table 5.2 Traditional biomass energy cousumption of sampled households (Kg per year per household)

Table 5.3 Household use of biogas (Total sample size: 524 households)

Table 5.4 Commercial energy consumption of sampled households

Table 5.5 Socioeconomic characteristics of sampled households

Table 5.6 Household time allocation to different activities (hours per year)

Table 5.7 Descriptive information about variables in the FMM model

Table 5.8 On-farm Labor Allocation: OLS and FMM estimates

Table 5.9 Descriptive analysis of data in production system estimation

Table 5.10 Estimates of Seemingly Unrelated Probit (SUP) model for biomass collection and market participation for sampled households

Table 5.11 Estimation results of the simultaneous equations using IT3SLS

Table 5.12 Description of variables used in estimating AL/AIDS model

Table 5.13 Parameter estimation of LA/AIDS model using censored SURE

Table 5.14 Price and income elasticity estimated by LA/AIDS model (mean value)

Table 5.15 Constrained IT3SLS estimation results of labor share equations

Table A.1 Estimation results of the normalized quadratic profit function with imposition of convexity

| 15 →

List of Figures

Figure 1.1 Location of Sichuan Province

Figure 1.2 Rural energy consumption in Sichuan Province (2006–2013)

Figure 1.3 Rural residential energy consumption in Sichuan Province

Figure 1.4 Rural energy consumption for productive activities in Sichuan Province

Figure 1.5 Conceptual framework

Figure 1.6 Geographical distribution of study region


ISBN (Hardcover)
Publication date
2018 (October)
Energy Choice Agriculture-energy linkages Energy behaviors Rural development
Berlin, Bern, Bruxelles, New York, Oxford, Warszawa, Wien. 2018. 192 pp., 23 b/w ill., 36 b/w tab.

Biographical notes

Qiu Chen (Author)

Qiu Chen is a Chinese agricultural economist. She received her Master Degree in Management of Agricultural Economy from Sichuan Agricultural University and her Ph.D. in Agricultural Economics from the University of Bonn.


Title: Biomass Energy Economics and Rural Livelihood in Sichuan, China
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194 pages