Energy poverty, children's wellbeing and the mediating role of academic performance: Evidence from China

Abstract

Using data from the China Family Panel Studies, we examine the effects of energy poverty on children's subjective wellbeing. We find that energy poverty reduces children's subjective wellbeing: a standard deviation increase in energy poverty is associated with 0.353 standard deviation decrease in subjective wellbeing. This general conclusion is robust to alternative ways of measuring subjective wellbeing and energy poverty, a suite of estimation techniques, and other sensitivity checks. Additionally, we find that academic performance is an important channel through which energy poverty lowers children's subjective wellbeing. Our findings point out the need to involve children both in household practices and policy decisions that seek to address energy poverty, especially when it pertains to the children's wellbeing.