Can smart energy alleviate energy poverty in China? –Empirical evidence using synthetic control methods

Abstract

Smart energy plays an important role in alleviating energy poverty in China in the context of the new technological revolution and industrial change. This paper uses China's smart pilot policy as a quasi-natural experiment, employing China's provincial panel data from 2011 to 2022, measuring energy poverty indices based on a projection pursuit evaluation model, and conducting a quasi-natural experiment using a synthetic control method to assess the effect of smart energy on energy poverty and specific mechanisms of action. The study found that smart energy has a specific and significant impact on energy poverty, but the effect differs in different regions depending on the construction cycle and energy endowment. In the mechanism test, smart energy significantly alleviates energy poverty through the mechanisms of improving energy supply capacity, improving energy payment capacity, and improving energy cleanliness. The results of the study provide empirical references for regional solutions to energy poverty and the planning of smart energy construction.