Energy Poverty Alleviation Research Articles

The pathway to sustainable development: The roles of financial development, technological innovation, and educational development in energy poverty alleviation

AbstractThis paper investigates the dynamics of energy poverty by evaluating the roles played by financial development, technological innovation, and educational development, among other factors. It seeks to identify pathways for sustainable development in the Belt and Road Initiative (BRI) countries. Based on recent panel data from 2000 to 2020, this research classified the sample into various income groups for a comparative analysis. A multidimensional comprehensive index of energy poverty was then formulated through principal component analysis (PCA). This study assesses the relationships between variables using a novel panel quantile autoregressive distributed lag (QARDL), ordinary least squares (OLS), panel unit root tests, Kao cointegration tests, and Wald tests. The results of the Kao tests confirm the presence of cointegration among the variables across all income groups and the overall sample. The panel QARDL approach indicates a significant and negative long‐term relationship between financial development and energy poverty across all income groups other than the low‐income countries. Similarly, technological innovation has a negative long‐term association with energy poverty for most groups, with the exception being the upper‐to‐middle‐income countries. Furthermore, educational development negatively influences energy poverty in the long term for all groups other than lower‐middle‐income countries. The findings for the overall sample suggest that financial and educational development are negatively connected with energy poverty in both the long and short term, while technological innovation only has a negative connection in the short term. In addition, the Wald test results revealed time‐varying integration and parameter stability in both the long and short terms.

Energy Poverty Alleviation in the Era of Energy Transition—Case Study of Poland and Sweden

The energy transition, aimed at significantly reducing greenhouse gas emissions to combat climate change, presents both opportunities and challenges in addressing energy poverty. This article explores the differing approaches of Poland and Sweden in energy poverty alleviation within the context of this transition. Poland, with its historical dependence on coal, faces considerable obstacles as it seeks to shift towards cleaner energy sources while minimizing the impact on vulnerable populations. Conversely, Sweden, supported by its advanced energy infrastructure and strong welfare systems, has implemented effective strategies that have largely mitigated energy poverty, though challenges persist for low-income households, especially in rural areas. The article delves into the definitions, drivers, and alleviation strategies of energy poverty in both countries. Through a comprehensive literature review and the analysis of key initiatives such as Poland’s Clean Air Program and Sweden’s Warm Rent scheme, the study underscores the potential for policy interventions to address energy poverty. It concludes with recommendations on how both countries can further reduce energy poverty, highlighting the critical role of energy efficiency, social support systems, and the integration of renewable energy in achieving a fair and equitable energy transition.

Regional Disparities in the Efficacy of Renewable Energy Development for Alleviating Energy Poverty in Indonesia: An In-depth Analysis

Regional Disparities in the Efficacy of Renewable Energy Development for Alleviating Energy Poverty in Indonesia: An In-depth Analysis

The Road to Eliminating Energy Poverty: Does Renewable Energy Technology Innovation Work?

Under the constraint of carbon neutrality targets, the issue of energy poverty has garnered increasing concerns. This study aims to measure energy poverty and assess the impact of renewable energy technology innovation in 30 provinces across China. Furthermore, it calculates city-level energy poverty in 274 cities. By examining the influence of renewable energy technology innovation on energy poverty, this study proposes a new approach to accelerate energy transition and promote sustainable development. The regression results, which have undergone rigorous robustness and endogeneity tests, demonstrate that renewable energy technology innovation significantly alleviates energy poverty. Moreover, the treatment effect of policies is determined through the regression control method. Specifically, the cities of Zhangjiakou, Baotou, and Qiqihar are analyzed to provide targeted suggestions for China’s energy development. The treatment effects of both provincial and city-level policies indicate that implementing renewable energy demonstration zones can effectively alleviate energy poverty. JEL Classification: Q48; O31

Exploring the effect of energy transition on energy poverty in the european union: Empirical evidence

ABSTRACT During the past few years, the risk of energy poverty has become a reality for an increasing number of households in the European Union and worldwide. Institutions react to this problem basically by introducing new policy measures. However, their efforts collide with two significant issues: (1) the difficulty of objectively measuring energy poverty among countries and (2) the understanding of the cause-effect relationship among policy measures and their impact on energy poverty. In this study, we propose a composite measure of energy poverty alternative to the existing approaches in order to make more effective time comparisons across member states of European Union. Then, we verify whether the investments to support energy transition implemented so far has been able to affect energy poverty among European Union countries. Outcomes reveal that energy transition can be considered a means to alleviate energy poverty, supporting the efforts of policymakers who propose measures toward the energy transition.

Effect of Energy Poverty Alleviation on High-Quality Economic Development: An Empirical Study Based on China

High-quality development (HQD) has been listed as the first and foremost task in building a modern socialist country in all respects and also an overarching issue of China’s economic and social development in the new era. To achieve economic HQD, a key approach lies in integrating energy development with poverty alleviation and fully leveraging the foundational role of energy infrastructure and supply services in reducing poverty. Using the provincial panel data from 2007 to 2017, this paper analyzes the impact of energy poverty alleviation on economic HQD from multiple dimensions in an empirical way and draws the following conclusions: first, energy poverty alleviation drives the economic growth of China’s eastern region and western region, but it cannot effectively promote the synchronous economic growth of the central region, thereby resulting in a greater imbalance in regional development; second, energy poverty alleviation has an effect on reducing the urban–rural income inequality, and such an effect is more significant in the western region; and finally, energy poverty alleviation has a significant effect on promoting economic HQD, and the effect is more significant in the central region and the western region. Furthermore, the transmission mechanism of energy poverty alleviation driving HQD is tested. It is found that energy poverty alleviation can drive HQD by promoting urbanization and technological progress.

Equity-based energy retrofits to address energy poverty in Canada

Many energy efficiency and decarbonization retrofit programs aim to alleviate energy poverty by targeting low-income households, but these programs do not always address the multiple determinants of energy poverty. This study develops a vulnerability-based framework to explore the extent to which energy retrofit programs designed for low-income households comprehensively account for socioeconomic, demographic, and cultural structures that shape energy poverty experiences, employing Canada as an empirical case study using key informant interviews with program administrators. The framework conceptualizes energy poverty as the vulnerability to future housing-related harms, amplified by energy-related risk factors, and conditioned by a household's inability to adequately respond. The study finds several key issues limiting the capacity of low-income retrofit programs to address the overlapping and compounding determinants of energy poverty, including inadequate funding, exclusion of the poorest quality housing, limited retrofit options, and a narrow focus on energy efficiency gains. This study shows key opportunities to expand and deepen the current ecosystem of low-income retrofit programs by expanding existing policy innovations. The paper also offers suggestions for widening the policy arena to address energy poverty, both within retrofit programs and beyond.

Environmental regulation and energy consumption transition of rural residents: A case of China

With rising global temperatures and complex environmental changes, it has become particularly important to reduce carbon emissions and promote clean energy transition, while energy transition in rural areas is difficult. Environmental regulation, as an important policy enforcement tool, plays an important role in protecting the environment, but its impact and mechanism on the energy consumption transition of rural residents are not clear. In this regard, this paper analyses the impact of environmental regulations on the energy consumption transition of rural residents in 30 provinces in China, using provincial panel data from 2005 to 2021. The main conclusions are as follows: (1) Environmental regulation can significantly promote the transition of rural residents' clean energy consumption, and the mechanism of action shows that environmental regulation can influence the transition of rural residents' energy consumption through the spread of environmental knowledge, technological progress, and the enhancement of residents' health awareness. (2) Heterogeneity analyses showed that the results of the impact of environmental regulations on the rural residents' energy consumption transition differ by geographic region, level of energy consumption, and temperature. This paper hopes to provide experiences and insights for effectively promoting energy consumption transition and upgrading and alleviating energy poverty in rural areas of China.

Empowering energy access: Exploring financial inclusion's impact on energy poverty in the fragile five economies

Energy poverty is a major issue that deepens economic challenges, especially in the five fragile states of Turkey, Brazil, South Africa, India, and Indonesia. The objective of this study is to examine the impact of financial inclusion on energy poverty, as removing financial barriers to energy access and utilisation is critical for sustainable development. The study hypothesizes that financial inclusion plays a decisive role in alleviating energy poverty. The study analyses the second generation panel methods such as AMG, Driscool-Kraay, and FMOLS using annual data from 2000 to 2021 and examines the causal relationships between variables using Dumitrescu-Hurlin panel causality test. The findings reveal that financial inclusion, low carbon technology trade, energy efficiency, economic growth, and human capital play a central role in alleviating energy poverty in these economies. On the other hand, a unidirectional causal relationship was found between financial inclusion and low carbon technology trade, human capital, energy efficiency, and energy poverty. In contrast, a bidirectional causal relationship was observed between economic growth and energy poverty. These findings provide important insights for policymakers and stakeholders; understanding the complex dynamics between financial inclusion and energy poverty can help design targeted strategies to increase energy access and promote inclusive economic development in fragile economies.

Impact of digital divide on energy poverty across the globe: The mediating role of income inequality

Energy poverty is an important reality facing the whole world, and the rapid development of digital technology has great potential in eradicating poverty. However, the differences in the level of information development have led to the existence of the digital divide within countries. In this context, this paper explores whether and how the digital divide affects energy poverty from a global perspective. Based on cross-country panel data, this study focuses on the effect and asymmetry of the digital divide on energy poverty. The results show that the digital divide hinders the reduction of energy poverty and manifests itself in a Matthew effect that makes the energy poor poorer. Second, the heterogeneity analysis based on income level and rural-urban areas find that the digital divide has a greater negative impact on energy poverty in low-income countries and rural areas. Finally, the mechanism analysis reveals that the digital divide exacerbates energy poverty mainly by increasing income inequality. Therefore, there is a greater need to focus on the efficiency, equity and inclusive development of the digital economy in the process of its globalization. The findings can also provide an empirical basis for policy design to bridge the digital divide and alleviate energy poverty.

Rethinking energy poverty alleviation through financial inclusion: Do institutional quality and climate change risk matter?

The main aim of this paper is to determine the impact of financial inclusion on energy poverty alleviation. It also interrogates whether institutional quality and climate change risk significantly influence the financial inclusion-energy poverty alleviation link using balanced panel data from 34 Sub-Saharan African countries from 2004 to 2021. Evidence from Discroll-Kraay Fixed Effects and Two-Step Instrumental Variable Generalized Method of Moments (2SIV-GMM) depicts heterogeneous energy poverty-alleviating impact of financial inclusion, demonstrating that financial inclusion is more instrumental in lower-income than lower-middle-income countries. Also, the results indicate a significant positive moderating role of institutional quality and a detrimental effect of climate change risk on financial inclusion-energy poverty alleviation nexus. Nevertheless, Dynamic Panel Threshold Regression results reveal threshold effects of financial inclusion, institutional quality, and climate change risk on energy poverty alleviation. The paper professes that financial regulations in allocating green resources would aid in alleviating energy poverty in Sub-Saharan Africa.

New energy technology innovation and energy poverty alleviation in China

Energy poverty has received attention, but in-depth research on the relationship between new energy technology innovation and energy poverty is lacking. Using data from 30 Chinese provinces spanning 2006 to 2020, we examine the impact of new energy technology innovation on energy poverty in China. We collect provincial-level patent data and energy poverty evaluation indicators, categorizing them into four subsystems: energy use level, energy capacity, energy use structure, and energy investment management. Findings indicates: (1) New energy technology innovation significantly alleviates energy poverty in China. This is primarily attributed to improvements in energy supply and residents' income. (2) The effectiveness of new energy technology innovations in alleviating energy poverty is enhanced by provincial transportation development and technology market activity but diminished by urbanization. (3) New energy technology innovations lead to notable increases in energy use level and energy capacity, a decrease in energy use structure, and no significant impact on energy investment management. (4) Innovations from enterprises, university and research institutes significantly contribute to alleviating China's energy poverty. However, innovations from industry-university-research collaborations and other innovators do not significantly affect China's energy poverty. Our findings provide valuable insights for theoretical research and energy poverty policy design.

Factors influencing consumers' willingness to adopt renewable energy technologies: A paradigm to alleviate energy poverty

Energy poverty is a persistent issue in India, impeding environmental and socio-economic progress. The transition from conventional to renewable energy technology offers the optimal alternative solution to alleviate this significant issue. However, successful adoption of these technologies heavily depends on the consumers' willingness. This study aims to evaluate the factors influencing consumers' willingness to adopt renewable energy technologies to alleviate energy poverty. Additionally, this study added a further novel factor (crime concern) with the existing factors (belief about renewable technology benefits expectation, renewable energy technology cost, environmental concern, subjective norms) to the extended theory of planned behavior. The analysis confirmed that consumers' strong belief system, environmental concerns and subjective norms positively impact the consumers' willingness to adopt reliable and affordable renewable energy. Cost and crime concern negatively influence consumers' willingness to use this optimal technology. Interestingly, the findings of this study indicate that the consumers' willingness to adopt renewable energy technologies has a notable impact on alleviating energy poverty. This study provides significant insights for governments, renewable energy technology manufacturers, and other relevant stakeholders to enhance the widespread uptake of renewable energy technology among consumers to achieve sustainable energy development goals in the context of energy poverty alleviation.

Escaping the Energy Poverty Trap: Policy Assessment

AbstractClimate change and the ongoing energy transition can increase energy poverty rates. To date, the main tool employed to alleviate energy poverty has involved income transfers to vulnerable households. However, measures that seek to improve a home’s energy efficiency have recently gained increasing relevance. In this study we assess the effectiveness of these two types of policy, assuming universal coverage and optimal behaviour. Results points that income transfers and energy efficiency measures have the potential to decrease the proportion of households in energy poverty; however, the magnitude of their respective effects differs greatly. The average impact of energy efficiency measures provides for a greater reduction in energy poverty rates than income transfer policies. Although the greatest reduction in energy poverty is obtained by combining both measures, this combination of tools leads to overlapping effects with income transfers making only a marginal contribution once total retrofit have been implemented.

The impact of land-use policy on household energy transition: Evidence from China's conversion of cropland to forestland program

The implementation of the Conversion of Cropland to Forestland Program (CCFP) has affected land-use patterns and biomass availability in China, consequently reshaping household energy consumption patterns. Utilizing data from the China Health and Retirement Longitudinal Study, this study employs a multinomial logit model to examine the impact of CCFP subsidies on household energy transitions, analyzed through the lenses of the energy ladder and energy types. Additionally, this study differentiates the effects of CCFP subsidies across households with varying characteristics. The empirical results reveal that, from the energy ladder perspective, CCFP subsidies hinder household energy transitions from biomass to both traditional and advanced commercial energy sources. From the energy type perspective, the subsidies impede transitions from biomass energy to coal, electricity, and LPG/LNG. These adverse effects may be attributed to the CCFP subsidy's role in increasing biomass supply and encouraging the use of biomass energy equipment. Moreover, the impacts of CCFP subsidies differ among households based on education level, location, and degree of engagement in farming. Overall, this study highlights the importance of considering land use policies and patterns in the formulation of energy policies aimed at promoting energy transition and alleviating energy poverty.

Alleviating China’s energy poverty: does smart transportation matter?

ABSTRACT In the era of the digital economy, smart transportation has achieved leapfrog development, affecting all aspects of life, but few scholars have paid attention to whether it has affected the goal of alleviating energy poverty (EP). Accordingly, our study uses data from 30 Chinese provinces, 10 years (2010–2019), to assess the correlation between smart transportation and EP by using the Instrumental variables generalized method of moments (IV-GMM) model. The findings indicate that: (i) a significant inverse relationship exists between smart transportation and EP, and smart transportation can significantly alleviate EP; (ii) the impact of smart transportation on EP under different quantiles is significant, and the higher the level of EP, the less obvious the role of smart transportation. Furthermore, (iii) aside from its indirect role in reducing emissions, smart transportation still contributes to EP reduction by influencing green technology innovation. In light of the aforementioned results, this study puts forward relevant policy recommendations to provide important policy insights for reducing EP through smart transportation.

Research on the Effect of Clean Energy Technology Diffusion on Energy Poverty

Addressing energy poverty is integral to the United Nations Millennium Development Goals, and clean energy technology serves as an essential tool in mitigating this issue. Existing studies pay less attention to the correlation between the two. In this study, we quantify the spread of clean energy technology using patent citation information and analyze balanced panel data from 30 provinces in China spanning the years 2004 to 2019. The findings reveal that the diffusion of clean energy technology not only directly reduces energy poverty but also indirectly alleviates it by enhancing energy efficiency and fostering employment. However, the positive impact of technology on poverty is affected by human capital. Specifically, when the number of college students per 10,000 people in a province surpasses 179, technology diffusion becomes effective in alleviating energy poverty. Furthermore, the efficacy of this mitigation varies significantly based on different regions. Technologies originating from developed economies such as the United States, Japan, and the European Union exhibit a more substantial impact than domestic alternatives. Additionally, the effect of alleviating energy poverty is more significant in the eastern region. Therefore, we make policy recommendations for alleviating energy poverty through the use of incentive policies, exploring differentiated models of clean energy technology development, and strengthening international cooperation.

Energy poverty measurement and determinants in rural China: Does education inequality matter?

Due to the pressing need to attain sustainable development goal 7, global attention on addressing energy poverty has increased. Improving rural education has been recognized as a strategy to mitigate energy poverty in rural China. However, the presence of education inequality remains a substantial challenge to energy poverty alleviation and underexamined. Our research aims to evaluate rural energy poverty levels systematically and investigate the impact of education inequality on rural energy poverty. This study begins by employing a novel weighting approach to develop a comprehensive indicator system, which accurately measures the extent of energy poverty in rural China. Subsequently, a panel fixed-effects model is utilized to analyze the causal impact of education inequality on rural energy poverty. Furthermore, the study explores the heterogeneity and potential mechanisms of education inequality on rural energy poverty. Findings reveal a decline in rural energy poverty from 2005 to 2020, and the nature of energy poverty has substantially transformed, with a greater prominence of using unclean and unaffordable energy sources. Education inequality increases rural energy poverty and indirectly affects it by reducing the income of rural residents. The influence of education inequality on rural energy poverty exhibits heterogeneity in both time and region. Policy recommendations are proposed for mitigating energy poverty and promoting education equality in rural areas.

What is the role of energy communities in tackling energy poverty? Measures, barriers and potential in the Netherlands

Energy poverty has become a growing concern. Energy communities have been highlighted to be key enablers to facilitate a just energy transition. However, energy poverty and energy communities have mostly been treated in relative isolation from each other. This study sets to unravel the specificities of energy communities' energy poverty alleviation approaches and barriers faced. The Netherlands is selected as a case due to a doubling of energy communities over the past decade and, as in the whole of Europe, growing concern about energy poverty. A survey is developed to appraise energy communities' (lack of) engagement in tackling energy poverty with n = 196. Using an ordinal logistic model, the self-reported effectiveness of approaches of energy communities in addressing energy poverty is assessed. Key results are that 52 % of energy communities address energy poverty, predominantly through providing advice, financial support and small energy efficiency measures. The largest barriers are identifying and reaching households in energy poverty, and lack of financial and human resource capacities. This study concludes that energy communities have potential to address energy poverty because of their capacity for citizen engagement and, in some cases, their financial support to vulnerable households. Future research is recommended to scrutinise the potential of energy communities to contribute to energy poverty alleviation as part of a local governance arrangement of partners. Insights from this study on implications for energy community movements and policy makers can also be valuable for other countries facing energy poverty challenges.

Infrastructure for sustainable energy access in Sub-Saharan Africa: Leveraging social factors and natural capital

This study investigates the impact of infrastructure development on energy poverty in 28 Sub-Saharan African (SSA) countries over the period 2010–2021. Utilizing the Africa Infrastructure Development Index (AIDI) as a comprehensive measure, the research examines both linear and nonlinear effects of infrastructure development on energy poverty reduction, while also exploring its influence on renewable energy production, underscoring its contribution to achieving sustainable development goals. The findings reveal that enhanced infrastructure significantly improves electricity access and alleviates energy poverty. The results further suggest that infrastructure development is only effective in alleviating energy poverty when a certain level of social development and environmental quality is achieved. Employing sensitivity analyses with alternative energy poverty indicators as well as physical infrastructure indicators confirms the stability of these results. This study underscores the importance of integrated infrastructure policies that consider social and environmental factors to effectively address energy poverty and support sustainable development goals in SSA.