Willingness-to-Pay for Climate Change Mitigation: Evidence from China

26 Pages Posted: 21 Sep 2015

See all articles by Yujie Li

Yujie Li

Renmin University of China

Xiaoyi Mu

Center for Energy, Petroleum and Mineral Law and Policy, University of Dundee

Anita R. Schiller

Department of Economics - Lancaster University Management School

Baowei Zheng

Renmin University of China

Date Written: May 5, 2015

Abstract

This study draws upon a large national survey of Chinese public cognition and attitude towards climate change and analyze the determinants of consumers’ WTP for energy-efficient and environment-friendly products. 85 percent of respondents indicate that they are willing to pay at least 10 percent more than otherwise would be for these products. The econometric analysis indicate that income, education, age and gender, as well as public awareness and concerns about climate change are significant factors influencing WTP. Respondents who are more knowledgeable and more concerned about the adverse effect of climate change show higher WTP. In comparison, the income elasticity is small. The results are robust to different model specifications and estimation techniques.

Keywords: Willingness-to-pay; climate change; China; interval regression

JEL Classification: Q2, Q4

Suggested Citation

Li, Yujie and Mu, Xiaoyi and Schiller, Anita R. and Zheng, Baowei, Willingness-to-Pay for Climate Change Mitigation: Evidence from China (May 5, 2015). Available at SSRN: https://ssrn.com/abstract=2662209 or http://dx.doi.org/10.2139/ssrn.2662209

Yujie Li

Renmin University of China ( email )

Room B906
Xianjin Building
Beijing, Beijing 100872
China

Xiaoyi Mu (Contact Author)

Center for Energy, Petroleum and Mineral Law and Policy, University of Dundee ( email )

University of Dundee
Dundee, Scotland DD1 4HN
United Kingdom

Anita R. Schiller

Department of Economics - Lancaster University Management School ( email )

Lancaster, LA1 4YX
United Kingdom

Baowei Zheng

Renmin University of China

Room B906
Xianjin Building
Beijing, Beijing 100872
China

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