How Efficient China’s Tiered Pricing Is for Household Electricity: Evidence from Survey Data

Due to the wide coverage of first-tier electricity consumption and small price difference between different tiers, current tiered pricing for household (TPHE) cannot give full play advantages increasing block tariffs (IBTs). Based on microscopic survey data provided by Chinese General Social Survey (CGSS) in 2015, this paper innovatively uses predicted average as instrumental variable explore influencing factors order solve possible endogenous problems. Simultaneously, samples are further grouped income consumption, characteristics groups discussed separately. The results show that, low-income groups, elasticity is relatively low because households concentrated meeting energy demand necessary basic life, while high-income high mostly generated improving quality life.