Income responsiveness of household energy expenditure across life-cycle stages: Evidence from China

Energy policies targeting households by income may overlook differences in energy expenditure across the household life cycle. Using 44,581 household-year observations from the China Family Panel Studies (2014–2022), this study distinguishes six stages and estimates income elasticities with two-way fixed effects. Elasticities are positive across all stages, but highest in formation and substantially lower in the remaining stages. Childrearing, burden-peak, and stabilization households nevertheless have higher expenditure than formation-stage households at comparable income and household size. Therefore, higher expenditure and stronger income responsiveness characterise different stages. Durable-goods accumulation offers a possible explanation for the stronger formation-stage response, while consumption structure is associated with income responsiveness across stages. Overall responsiveness is higher in the north than in the south. Among initial gaseous-fuel users, it is higher in rural than in urban areas. These findings support considering family stages alongside income when designing household energy policies. Equipment support during formation could account for both purchase and operating costs, while assistance for childrearing, burden-peak, and stabilization households could reflect actual energy bills. Such measures also need to consider local heating charges and the recurring costs of cleaner fuels.