Public pension accelerates the household electrification: Experience from rural China

This study evaluates the impact of government transfer payment policies on rural household electricity consumption. Leveraging the implementation of China's New Rural Social Pension (NRSP) scheme, which provides pension income to individuals aged 60 and above, we employ a fuzzy regression discontinuity design to causally identify the effect of pension income on household electricity consumption. The findings show that the NRSP eligibility increases electricity expenditure by approximately 1.2 times among beneficiary households. The effect is especially pronounced for low-income households, elderly individuals living alone, and those receiving pensions through personal contributions. Further analysis reveals three main pathways through which the NRSP promotes electricity use: a direct income effect, a shift from traditional to modern energy sources, and changes in time allocation due to reduced engagement in non-agricultural labor. These results underscore the broader role of public pension programs in alleviating energy poverty and supporting a just energy transition in rural areas.