Does the transition to low-carbon energy alleviate urban-rural energy inequality? The case of China

Abstract

This paper aims to investigate whether China can reduce urban-rural energy inequality during its transition to low-carbon energy. Using data from 30 Chinese provinces between 2006 and 2019, we employ the system generalized method of moments (SYS-GMM) to investigate the correlation between low-carbon energy transition (LET) and urban-rural energy inequality. Furthermore, to investigate the mechanism, this study also considers energy service accessibility and industrial structure upgrading. The results of the study show that the degree of LET in China is increasing but with uneven spatial distribution. Moreover, LET is effective in reducing urban-rural energy inequality in China. Specifically, 1 % increase in LET corresponds to 0.045 % reduction in the urban-rural energy inequality index. Additionally, energy service accessibility and industrial structure upgrading are identified as effective channels for LET to mitigate urban-rural energy inequality. Furthermore, our study demonstrates that the alleviating impact of LET on energy inequality is more significant in regions where LET and urban-rural energy inequality levels are high. Drawing on our research results, we suggest policy recommendations to encourage the adoption of low-carbon energy sources and diminish urban-rural energy inequality.