Chinaʹs transition to green energy systems: The economics of home solar water heaters and their popularization in Dezhou city

Studying the popularization of solar water heaters (SWHs) is significant for understanding Chinaʹs transition to green energy systems. Using Dezhou as a case study, this paper presents new angles on analyzing SWH deployment in China by addressing both the economic potential and the institutional dimensions at the local level. Using estimates from the demand-side of hot water for a typical three-person household in Dezhou, the paper evaluates the economic potential of a SWH in saving electricity and reducing carbon dioxide emissions. Then, expanding the analysis beyond economics, we take an institutionalist approach to study the institutional factors that contribute to Dezhouʹs success in SWH adoptions. By examining the five main actors in Dezhouʹs energy regime, we find that Dezhouʹs SWH deployment is driven by an urge to develop businesses and the local economy, and its success results from at least five unique factors, including the development of SWH industrial clusters in Dezhou, big manufacturersʹ market leadership in SWH innovations, a tight private enterprise-local government relation, geographic location within the SWH industrial belt, and the adaptive attitude of Dezhouʹs households towards natural resource scarcity.