Digital divide and household energy poverty in China

Abstract

This study explores whether and how the digital divide affects household energy poverty in China. Based on China Family Panel Studies data, the digital divide index at the household level is constructed using the factor analysis method. We then examine the effects of the digital divide on household energy poverty. The results suggest that the digital divide hinders the reduction of household energy poverty. Our results are robust against different energy poverty measures. We also conduct the heterogeneity analysis of income groups, age groups, and urban and rural households. The findings demonstrate that the digital divide has a greater negative impact on alleviating energy poverty in low-income households, older households, and rural households. It also inhibits household energy poverty reduction by increasing income poverty and credit constraints, reducing employment, and weakening social capital. For developing countries such as China, the digital economy has developed rapidly. Nevertheless, the digital divide will inevitably impair the energy poverty reduction and welfare of some households. In digital economic development, we need to focus on the digital economy's efficiency, fairness, and inclusive development. Our findings can provide a micro basis for constructing the digital divide index, economic impact assessment, and policy design to narrow the digital divide in developing countries.