Implications of Non-Farm Work for Clean Energy Adoption: Evidence from Rural China

Abstract

Due to China’s socioeconomic development, labor force transfer from rural areas has become more common, the income of rural households has increased, and the structure of rural household clean living energy consumption has changed. However, few studies have explored the correlation between non-farm employment and clean energy adoption in rural households. Using survey data from 1175 farmers in 106 villages from a 2018 Survey in Liaoning Province, this study uses a Probit model to analyze the effect of non-farm work on clean energy adoption, as well as an effect decomposition model to examine the specific mechanism of their interaction. Robustness tests were performed using extended regression models (ERMs), propensity score matching (PSM), and variation of the core explanatory variable measures. The results found that: (1) Rural residents’ non-farm work has a significant positive effect on their household clean energy adoption. (2) Increasing rural residents’ household income and promoting the growth of their health knowledge are the main channels through which non-farm work influences their clean energy adoption. (3) Non-farm work has a more positive impact on household clean energy adoption for young or male farmers, those who had a junior high school education or above, and those who had a village head in the family. This study provides an understanding of rural non-farm work and clean energy adoption decisions and provides references for the effective allocation of rural labor resources and the formulation of policies related to rural energy adoption.