Can internet development alleviate energy poverty? Evidence from China

Abstract

Promoting Internet development and eliminating energy poverty are two important policy agendas for China in the era of digital economy. In the context of “Internet + energy”, there is a need to explore whether the development of the Internet can alleviate energy poverty. The aim of this study is to test the influence and transmission mechanism of the development of Internet on energy poverty in China by using provincial panel data from 2011 to 2019. The study found that: (1) energy poverty is still widespread in China, especially in the central and western regions. And the low energy affordability is its major source; (2) the development of Internet can alleviate energy poverty. On one hand, it can improve energy affordability by promoting economic development and technological progress. On the other hand, it also helps to enhance the availability of energy by promoting technological advances and improving knowledge level; and (3) there are nonlinear and regional heterogeneous effects of the development of Internet on the alleviation of energy poverty. Based on the above results, corresponding policy suggestions for China to alleviate energy poverty are provided.