Reverse subsidy dilemma caused by the transformation from individual heating to central heating

With the increase in household income enhancing people's expectations for life comfort, the demand for central heating in hot summer and cold winter areas (HSCWs) has increased. This study aims to explore whether it is appro-priate to promote central heating in HSCWs from the perspectives of inequality and reverse subsidies. Reverse subsidy dilemma caused by the transformation from individual heating to central heating was proposed by the analysis relying on utility theory. This paper presents data suggesting that individual heating could provide more options for different household in-come groups than could central heating. Furthermore, the heating inequality among different income groups is assessed, and reverse subsidies from the poor to the rich are discussed. We find that the implementation of central heating leads to few adverse effects and high utility for the rich and increased expenditures and low utility satisfaction for the poor at the same price level.

Automated summary

Increasing household income has led to higher expectations for life comfort, resulting in a growing demand for central heating in hot summer and cold winter areas (HSCWs). This study investigates the feasibility of promoting central heating in HSCWs based on considerations of inequality and reverse subsidies. The analysis, using utility theory, introduces the reverse subsidy dilemma caused by the transition from individual heating to central heating. Data presented in this paper suggest that individual heating offers more choices for households with different income levels compared to central heating. Furthermore, the study assesses heating inequality among income groups and discusses reverse subsidies from the poor to the rich. Findings indicate that the implementation of central heating has limited adverse effects and high utility for the rich, but it leads to increased expenditures and low utility satisfaction for the poor at the same price level.