Creating energy poverty by an anti-energy poverty policy? An analysis of the impact of the “coal-to-gas” policy in Northern China

Abstract

The recent “coal-to-gas" (CTG) energy policy serves as an important measure to mitigate air pollution in northern China, and also carries out a mission of alleviating rural energy poverty. To unravel the impact of the CTG policy on rural energy poverty, this study examines the effect on economic and well-being dimensions of energy poverty based on data from five villages in northern China. The findings indicate that in general the CTG policy only limitedly alleviated rural energy poverty with effects varying significantly across different social groups. Economically, the policy has significantly increased recipients’ financial burden, and thereby exacerbated their energy poverty. In terms of well-being, the policy has improved the quality of life for villagers by reducing cooking time and raising indoor temperature, thus contributing to a reduction in energy poverty. The CTG recipients are distinguished into four categories based on varied experiences on economic and well-being aspects, with only one third experiencing overall positive impacts. The study suggests that energy policies intended to alleviate energy poverty may paradoxically perpetuate it. The differential impact across social groups calls for more nuanced and targeted approaches to mitigate the adverse effects of energy policies.