Clean energy powers energy poverty alleviation: Evidence from Chinese micro-survey data

Abstract

The impact of clean energy development on alleviating energy poverty is yet unknown. Therefore, this paper uses the micro data of the China Family Panel Studies to examine the impact of clean energy on alleviating energy poverty with the Probit estimation model. It is revealed that the widespread use of clean energy can significantly reduce the possibility of respondents falling into energy poverty. This is confirmed by historical instrumental variables and robustness tests. Additionally, the significant promoting effect of clean energy affects only female respondents, not male respondents. The regression results for groups at different education levels prove that the use of clean energy is only conducive to alleviating the energy poverty of respondents with a college degree or below. Furthermore, the mechanism test results propose that clean energy not only plays an intermediary role in promoting employment and increasing household income, but could also have health effects that reduce household medical expenditure. Thus, more income can be spent to improve the energy consumption structure and eliminate energy poverty. This paper's conclusion can provide references for clarifying the relationship between clean energy and energy poverty and setting policy implementation plans.