Reduce Energy Poverty Research Articles

Can financial inclusion affect energy poverty in China? Evidence from a spatial econometric analysis

The relationship between financial inclusion (FI) and energy poverty (EP) has received increasing attention across several disciplines in recent years. This study collects panel data from 30 provinces in China from 2011 to 2017 to determine the effects of FI on EP from a spatial analysis perspective. By the spatial Durbin modelling (SDM), it is found that the FI contributes to the alleviation of the EP. Meanwhile, through the heterogeneity analysis from the three dimensions of the FI, we observe that the coverage and the use depth of the FI have significant effects on the EP, with the use depth exhibiting the effect most obviously. Moreover, by analyzing the intermediary effect of the FI on the EP, we find that the FI alleviates the EP through upgrading the industrial structure. In summary, this paper shows that the implementation of the FI impacts the EP and contributes to the EP reduction. These findings may help to inform the development of effective policies with provision of theoretical support for reduction of the EP.

Financial inclusion and energy poverty nexus in the era of globalization: Role of composite risk index and energy investment in emerging economies

Even in the modern era with increasing globalization and technological innovation, the issue of energy poverty is still debatable in many parts of the world. Unlike developed countries, developing countries struggle to satisfy the growing energy demand. To evaluate the role of financial inclusion and its impact on energy poverty in six representative emerging economies including Brazil, China, India, Indonesia, Mexico, and Russia from 2004 to 2019, this paper examines the role of the composite risk index (a combination of political, economic, and financial risk), investment in energy with public-private participation, gross domestic product, human capital, globalization, and renewable energy. This study first constructed a multidimensional index to measure the weighted average energy poverty and composite energy poverty index along with a novel index for financial inclusion. Moreover, this study uses novel panel data approaches such as Westerlund's cointegration and cross-sectionally augmented autoregressive distributed lags model (CS-ARDL). The study established long-run cointegrating relationship between energy poverty and its detereminants, i.e., financial inclusion, globalization, investment in energy, human capital index, income and composite risk index. The empirical results found that financial inclusion, renewable energy electricity, globalisation, income, human capital index and energy investment are the key determinants of energy poverty in emerging economies. Furthermore, financial inclusion is found to curb energy poverty. Human capital index and globalization also help to reduce energy poverty. Given the empirical results of the nexus and impacts of financial inclusion on energy poverty using the multidimensional proxies, the study provides critical implications to researchers and policymakers in mitigating the consequences of energy poverty and the development of financial systems and their co-movement with energy poverty-related issues.

Does technical assistance alleviate energy poverty in sub-Saharan African countries? A new perspective on spatial spillover effects of technical assistance

The sub-Saharan Africa (SSA) region gathers the most vulnerable countries, which are criss-crossed geographically, making SSA countries extremely vulnerable to the influence of neighbouring countries. However, very few studies have considered the spillover effect of technical assistance in the recipient country. To fill the research gap, a dynamic space Dubin approach based on an asymmetric space weight matrix was developed. The results show the Moran's I value of technical assistance is positive, indicating that there is a positive correlation in space. Technical assistance is not unconditional free help, but with the strong subjective will of donor countries. SDM's estimation results show that the coefficient of the space lag term is greater than the coefficient of the time lag term, indicating that the spatial spillover effect can promote the power development of the recipient country more than the path dependence effect. Technical assistance to neighbouring countries can only improve the power development of the target country in the short term. In the long run, the mismatch effect of aid resources from neighbouring countries inhibits the power development of recipient countries. Therefore, technical assistance should be integrated with the situation of the recipient country in order to reduce energy poverty more effectively.

A Community Engagement Model for an Inclusive Just Energy Transition in the South

Within a dynamic global political arena, the economic ramifications of the COVID-19 pandemic, energy impoverishment, ever-increasing global awareness of climate change, energy justice and just energy transition have emerged as important aspects that require critical reflexive deliberation to ensure that those on the margins of the energy divide do not pay the price for such a transition. Existing models to ensure energy justice were described as failing to consider stakeholder perspectives and needs. It was therefore proposed that such models be inclusive and reflective of diverse stakeholders, including local households, communities, utilities and governments. To this end, the University of South Africa’s Institute for Social and Health Sciences has developed a Transformational Model of community engagement in collaboration with communities which can be applied to articulate and guide the community engagement processes in an inclusive just energy transition. In this article, I present the model which offers opportunities to integrate multiple perspectives, prioritise the needs of diverse community stakeholders, interrogate power imbalances, and enhance working collaborations and partnerships, while also facilitating ongoing oversight and sustainable programme implementation. This model is a viable framework to achieve energy justice through an inclusive equitable transition to renewable energy technologies and by extension to reduce energy poverty. It has been applied in diverse community contexts across two provinces (Gauteng and the Western Cape) to engage with and build lasting community–institutional relationships. It has also been used to design, develop and evaluate contextually applicable sustainable initiatives, including a community-wide campaign.

A Decision Support Methodology to Foster Renewable Energy Communities in the Municipal Urban Plan

Renewable Energy Communities (RECs) represent a possible solution to facilitate the transition to carbon neutrality and reduce energy poverty in urban areas. Although the topic has received little attention from urban planning scholars and practitioners, they can make a significant contribution in the enhancement of RECs. To this end, this article proposes a methodology that allows identifying priority urban areas where the Municipal Urban Plan can incentivize RECs’ establishment. These areas are spatially identified where a minimization of the constraints on RECs’ formation and a maximization of their energy and social benefits are expected. The application of the proposed methodology to an Italian municipal area where the Plan is being drawn up is presented. The obtained results show how priority areas can be found both in the urban center and in rural areas, suggesting that urban planning can encourage different REC configurations, depending on the settlement fabric and land use, as well as the number of buildings to be clustered and potential leaders who can lead the community development process.

To what extent can community energy mitigate energy poverty in Germany?

The reduction of energy poverty and the expansion of citizen-led community energy projects are two important issues for a just energy transition in the European Union. While some socio-economic aspects of community energy are well researched, there is a dearth of literature on its potential to include vulnerable households and eventually reduce the risk of energy poverty. Through the lens of energy vulnerability thinking, this paper examines current and future drivers of energy poverty in Germany, as well as factors that may limit or facilitate the inclusion of vulnerable consumers in community energy. It draws on previous studies and on 12 semi-structured interviews conducted in the Summer of 2021 with experts in the fields of energy poverty or community energy. Using a three-tenet conceptualization of energy justice, the article argues that community energy projects can mitigate energy poverty in Germany by providing affordable renewable electricity to vulnerable and energy-poor consumers, as well as by establishing fair procedures that consider various vulnerability contexts. Yet, deep-rooted distributional injustices in housing and social transfer schemes that drive energy poverty are likely to remain. In order to advance energy justice, community energy projects hinge on a collaborative multi-level and multi-actor environment.

The impact of renewable energy technology innovation on energy poverty: Does climate risk matter?

While the literature has explored various determinants of energy poverty (EP), there is scant knowledge about the linkage between renewable energy technology (RET) innovation and EP. Based on an evaluation index system of energy poverty, this research applies the method of moment quantile regression model to examine whether and how RET innovation affects EP. Using panel data from China's 30 provinces for the 2003–2019 period, the results first reveal that RET innovation does relieve EP. Second, both linear and nonlinear models confirm that climate risk exhibits both a moderating effect and threshold effect on the relationship between them. When the climate risk index is low, RET innovation is conducive to the alleviation of EP; otherwise, the opposite is true. Finally, this moderating effect shows obvious spatial heterogeneity that only exists in western China and is not significant in the central and eastern region. Our findings thus enrich the extant literature and provide insights into targeted energy poverty reduction and achieving sustainable energy development.

Modeling the dynamic influences of economic growth and financial development on energy consumption in emerging economies: Insights from dynamic nonlinear approaches

This article evaluates the dynamic impacts of economic growth and financial development on energy consumption in emerging economies from 1998 to 2019. The total financial development and its submeasures of financial institution and financial market development are applied in consideration of the different dimensions of financial development. In doing so, we apply a new dynamic semiparametric additive panel model to address potential dynamicity and nonlinearity. Moreover, the dynamic panel threshold model is recommended to explore the dynamic threshold effect of income growth on energy pressure under different financial development indicators, complementing the gap in the existing research on nonlinear mechanisms regarding this topic. Our findings do not indicate the presence of the EKC hypothesis but verify that income growth can reinforce energy pressure. Total financial improvement and financial market development both display an inverted “U-shaped” nonlinear influence on energy expenditure, while financial institution development can directly ease energy pressure. We also find that financial development performs a significant threshold effect in the linkage between income growth and energy expenditure. The higher the total financial development and financial market development levels are, the stronger the contribution of economic growth on energy pressure; however, the unfavorable influence of economic growth on energy pressure is receded with the increase in financial institution development. Some policy implications are provided for reducing energy poverty through optimizing economic and financial advancement.

Spatial evaluation of multidimensional energy poverty between farming and non-farming communities of agro-climatic zones of Pakistan

The current study aims to investigate the most pivotal social predicament of energy poverty in multiple attributes between farming and non-farming communities of agro-climatic zones of Pakistan. To highlight outcomes empirically, unanimously accredited Alkire and Foster's (2008) indexing methodology and well-organized cross-sectional data of PSLM of the last decade have been used. An assessment of the study reveals that multidimensional energy poverty is purely a farming phenomenon for agro-climatic zones of Pakistan. However, the time-variant situation evaluates that in the smaller (longer) frame of time, energy poverty presents a hybrid (increasing) trend between both discussed communities and across all the agro-climatic zones except cotton-wheat Sindh. Moreover, a relative change in energy poverty shows that in non-farming communities, the declining rate of energy poverty has been immensely satisfying for the last decade. Sustainable Development Goal of complete energy poverty reduction under similar circumstances can easily be achieved by 2030, while contrarily in farming communities, still quicker development in most of the energy services, like provision of gas and electricity, access to most of the households at their doorsteps on inexpensive rate, and creating awareness to the use of modern energy gadgets are required to achieve SDG in given in due time.

The Association of Financial Inclusion and Multidimensional Energy Poverty in Indonesia

Financial service could reduce household energy poverty through fund transfer to encourage the ability to access modern energy. This study investigate the role of financial inclusion on household energy poverty in Indonesia. The energy poverty variable is measured by using multidimensional approach with five dimensions and six indicators which are cooking fuels, indoor pollution, lighting, ownership of household appliances, and supporting equipment for basic services such as education, entertainment, and communication. Financial inclusion is measured by using multidimensional approach based on household accessibility to financial institution such as banking, credit, and insurance services. Linear Probability Model (LPM) and Probit model was used to investigate the association between financial inclusion and energy poverty. The result finds that financial inclusion has a negative association with household energy poverty. It implicates strategy for reduce energy poverty by increase financial access such as bank agents, especially in areas which far from banks.How to cite:Widyastuti, A. T., & Hartono, D. (2022). The Association of Financial Inclusion and Multidimensional Energy Poverty in Indonesia. Signifikan: Jurnal Ilmu Ekonomi, 11(2), 201-218. https://doi.org/10.15408/sjie.v11i2.26516.

Reducing energy poverty in deprived regions or supporting new developments in metropolitan suburbs? Regional differences in the use of subsidies for home energy efficiency renovations

This paper contributes to existing research on home energy efficiency renovations by analysing the extent to which regional differences in the distribution of subsidies for renovations are related to geographical and socioeconomic factors, by analysing statistical data for districts in the Czech Republic. The novelty of this study lies in the fact that it maps and analyses not only regional differences in the rate of drawing subsidies and its determinants, but also differences in the way these subsidies are used (whether for reducing the energy intensity of existing houses by insulation, implementing renewable energy technologies or building new houses with low energy intensity). The analysis revealed significant correlations between the amount of subsidies drawn in districts per capita and variables which indicate territorial stability and social capital. There are significant differences in the rate of drawing subsidies between specific regions that are considered as economically deprived and where people are at higher risk of energy poverty. While border regions in the east of the country show an above-average use of funds for insulation of existing houses, in the largest cities and their suburban areas people are more likely to use subsidies for construction of new houses. The results indicate that subsides should be redistributed and targeted more effectively in respect to the declared objectives of the program.

Energy subsidies and poverty: The case of fossil fuel subsidies in Burkina Faso

Burkina Faso has long relied on energy subsidies to facilitate the access of the population to energy products. However, there is no evidence that they contribute to monetary nor energy poverty reduction. This paper aims to assess the effectiveness of fossil fuel subsidies in alleviating monetary and energy poverty in Burkina Faso, focusing on Liquefied Petroleum Gas (LPG) and liquid fuel subsidies. It then evaluates the impact of shifting expenditure from energy subsidies towards universal cash transfer to the poor.The distributional impact of subsidies on households is estimated using the price-gap approach, computing the difference between the reference price and the end-user price across the income distribution. Unlike many price-gap analyses, our price-gap estimate takes into account regional disparities in energy pricing.The analysis reveals that energy subsidies are not pro-poor. Rather, (i) end-user prices of LPG and liquid fuel are not aligned with monetary poverty, (ii) subsidies have a near zero impact on energy and monetary poverty, as those at the bottom income distribution barely benefit from the subsidies, (iii) there is a geographical dimension to the regressiveness of subsidies, as the reform impacts wealthier regions only. Alternative energy policies under the form of a cash transfer targeting the poor maximize redistribution while being budget-neutral.

Projecting the impact of air pollution on child stunting in India—synergies and trade-offs between climate change mitigation, ambient air quality control, and clean cooking access

Many children in India face the double burden of high exposure to ambient (AAP) and household air pollution, both of which can affect their linear growth. Although climate change mitigation is expected to decrease AAP, climate policies could increase the cost of clean cooking fuels. Here, we develop a static microsimulation model to project the air pollution-related burden of child stunting in India up to 2050 under four scenarios combining climate change mitigation (2 °C target) with national policies for AAP control and subsidised access to clean cooking. We link data from a nationally representative household survey, satellite-based estimates of fine particulate matter (PM2.5), a multi-dimensional demographic projection and PM2.5 and clean cooking access projections from an integrated assessment model. We find that the positive effects on child linear growth from reductions in AAP under the 2 °C Paris Agreement target could be fully offset by the negative effects of climate change mitigation through reduced clean cooking access. Targeted AAP control or subsidised access to clean cooking could shift this trade-off to result in net benefits of 2.8 (95% uncertainty interval [UI]: 1.4, 4.2) or 6.5 (UI: 6.3, 6.9) million cumulative prevented cases of child stunting between 2020–50 compared to business-as-usual. Implementation of integrated climate, air quality, and energy access interventions has a synergistic impact, reducing cumulative number of stunted children by 12.1 (UI: 10.7, 13.7) million compared to business-as-usual, with the largest health benefits experienced by the most disadvantaged children and geographic regions. Findings underscore the importance of complementing climate change mitigation efforts with targeted air quality and energy access policies to concurrently deliver on carbon mitigation, health and air pollution and energy poverty reduction goals in India.

A comprehensive urban programme to reduce energy poverty and its effects on health and wellbeing of citizens in six European countries: study protocol of a controlled trial

BackgroundNearly 11% of the European population is affected by energy poverty. Energy poverty is defined by the European Commission (2016) as the inability to afford basic energy services to guarantee a decent standard of living. Energy poverty is considered a complex, multidimensional problem that affects environment, housing, urban development, and health. Living in energy poverty conditions is associated with poorer human health and wellbeing. Hence, the WELLBASED intervention programme aims to design, implement and evaluate a comprehensive urban programme, based on the social-ecological model, to reduce energy poverty and its effects on the citizens’ health and wellbeing in six European urban study sites: Valencia, Spain; Heerlen, The Netherlands; Leeds, United Kingdom; Edirne, Turkey; Obuda, Hungary, and; Jelgava, Latvia.MethodsA controlled trial is performed. A total of 875 participants are recruited (125–177 per study site) to receive the WELLBASED intervention programme for 12 months (intervention condition) and 875 participants act as controls (control condition). Data will be collected with a baseline measurement at inclusion (T0), and follow-up measurements after 6 months (T1), 12 months (T2), and 18 months (T3). In both study arms, effects of the WELLBASED intervention programme are measured: health-related quality of life (HR-QoL), mental health, frailty in older adults, self-perceived health, chronic conditions, and care utilization. At the same time points, household expenditure on energy and energy consumption are obtained. In the intervention arm, health-monitoring data (i.e. peak flow, oxygen saturation, blood pressure, and heart rate) are obtained monthly and sleep quality with a three-month interval. Household data with regard to temperature, humidity and air quality are collected near real-time by home sensors. Qualitative interviews are conducted in each study site to evaluate the impacts of the WELLBASED intervention programme and to help explain findings.DiscussionThe WELLBASED intervention programme will provide new insights into the effectiveness of a comprehensive urban programme to tackle energy poverty and its effects on health and wellbeing across Europe. Hence, this study can contribute to European-wide replicable solutions for policy-makers and city practitioners to alleviate energy poverty.Trial registrationISRCTN registry number is ISRCTN14905838. Date of registration is 15/02/2022.

What affect energy poverty in China? A path towards sustainable development

Despite the crucial role of investment in energy under public–private partnership (I.E.P.P.P.) in abating environmental pollution and reducing energy poverty (E.P.), the existing literature offers less information about the nexus between I.E.P.P.P. and E.P. In order to identify the E.P. gap based on accessibility, affordability, and availability dimensions, this study investigates the factors influencing E.P., and examines the impact of I.E.P.P.P., globalisation (G.L.O.), output (G.D.P.), risk, technological innovation (T.I.) and renewable energy consumption (R.E.C.) on E.P. in China during the period of 1990 to 2019. The causal relationship between E.P. with its determinants is also examined. Utilising fully modified ordinary least squares (F.M.O.L.S.) econometric approach, we find that investment in energy with a public–private partnership, T.I., and gross domestic product (G.D.P.) bridge the gap for E.P., whereas R.E.C., composite risk index (C.R.I.), and G.L.O. increase the E.P. gap in China. In addition, frequency Domain Causality test reveals that unidirectional causation from I.E.P.P.P., G.D.P., T.I., G.L.O., risk, and R.E.C. to E.P. in the short run to long run.

Modeling the environmental impact of energy poverty in South Korea: Do environment-related technologies matter?

This study investigates the impact of the energy poverty index (EPI) on the ecological footprint (ECF) as an inclusive environmental quality index in South Korea from 1990 to 2019, considering environmental-related technologies (ERT), real GDP per capita (RGDPpc), and financial development (FD) in the environmental function. The principal component analysis is used to create the EPI based on accessibility, availability, and affordability. The dynamic ARDL model results reveal that EPI and FD drive the ecological deficit in the short and long runs. In the long run, however, ERT act as a moderator. Lastly, the Breitung-Candelon Spectral Granger Causality Test demonstrates that the ecological deficit is related to EPI, FD, and RGDPpc in the short to long term. On the other hand, environmental technologies have a medium-to-long-term relationship with their ecological footprint. The research findings include government policy recommendations to accomplish COP 26 neutrality and sustainable development goals. The results show how important it is to improve residents’ access to clean energy and reduce energy poverty by putting the right economic, environmental, and energy policies into place.

Sources of Energy Poverty: A Factor Analysis Approach for Spain

This study estimates housing quality and features explaining energy poverty in Spain and its regions. By using the EU-SILC dataset for 2008–2019, it calculates the hidden links between energy poverty indicators and housing features, controlled by other variables such as type of household, poverty, and housing tenancy. Confirmatory factor analysis is used to identify the role of different dimensions in explaining energy poverty at the household level. The empirical evidence finds three hidden factors associating energy poverty with poverty, poor housing quality, and housing size and outskirts location. These three factors enable classifying households accordingly, revealing their distribution across Spain and three of its 17 Spanish regions: Madrid, Cataluña, and Valencian Community. Findings indicate how the impact of energy poverty differs by region, rejecting the general hypothesis that all households in poverty live in poor housing because they cannot afford the maintenance costs, thus causing energy poverty. Results suggest that energy poverty due to poor housing quality and location affects many households that are not necessarily poor, with different impacts depending on location. The association between energy poverty and larger houses located on the outskirts represents new evidence in the literature and is one of the contributions of this study, together with the methodology for classification. Results suggest that retrofitting investment would be crucial in reducing energy poverty problems in Spain.

Exploring the nexus between fiscal decentralization and energy poverty for China: Does country risk matter for energy poverty reduction?

Interpreting energy poverty in respect of lack of accessibility, availability, and affordability of energy resources, this study aims to explore the macroeconomic determinants of multidimensional energy poverty in China over the 2005Q1-2019Q4 period. Three weighted and one unweighted energy poverty indices are constructed to measure the incidence of energy poverty in China using relevant energy-related indicators that capture the accessibility, availability, and affordability dimensions of energy poverty. The overall results indicate that a 1% rise in the degrees of fiscal decentralization and country risks aggravates the energy poverty situation in the long run by reducing the energy poverty indices at most by 0.05% and 0.03%, respectively. In contrast, positive shocks to the levels of economic growth, renewable energy share, and technological innovation by 1% are evidenced to be associated with declines in the energy poverty indices in the long run at most by 0.43%, 0.18%, and 0.06%, respectively. Besides, the marginal impacts of these variables are seen to be comparatively larger for the composite energy poverty indices that emphasize more on the accessibility dimension of energy poverty in China. Based on these findings, greening the fiscal decentralization policies, lowering country risks, promoting economic growth, stimulating higher renewable energy use, and financing technological innovation are recommended for mitigating the incidence of energy poverty in China. These policies are also expected to assist China in partially achieving the Sustainable Development Goals agenda of the United Nations and enable the nation to attain its 2060 carbon neutrality target.

Does public capital expenditure reduce energy poverty? Evidence from Nigeria

PurposeGiven the ever-growing fiscal commitments of Nigeria and her chequered history of electricity generation and distribution, the fortunes of the energy sector in the country have been affected by the prevalence of energy poverty. Government policies such as public capital expenditure (PCE) present a crucial option for reducing energy poverty in Nigeria, providing the purpose of this study.Design/methodology/approachTo investigate the relationship between government capital spending and five distinct energy poverty proxies, this research applies the Bayer–Hanck cointegration system and the auto-regressive distributed lag (ARDL) bound test.FindingsThe findings indicate that public capital spending in Nigeria worsens energy poverty by reducing access to electricity, urban electrification, renewable energy consumption and renewable electricity generation, with a positive but insignificant influence on rural electrification.Originality/valueThis inquiry presents a pioneering investigation of the nexus between PCE and energy poverty in Nigeria. Also, aside from the variables of energy poverty adopted by existing studies, this study incorporates renewable energy consumption and renewable electricity output with implications for energy poverty and sustainable development.

Effectiveness of an Energy-Counseling Intervention in Reducing Energy Poverty: Evidence from a Quasi-Experimental Study in a Southern European City.

Energy poverty is a serious social problem with well-known adverse health consequences. This problem has been addressed mainly through improvements in the energy efficiency of housing. Still, little is known about the effects of information-based measures on energy poverty and their impacts on health. A quasi-experimental study was implemented to assess the effectiveness of an energy-counseling home visit intervention targeting the vulnerable population in a southern European city, Barcelona, in alleviating energy poverty and improving health. The intervention had beneficial impacts on keeping homes at an adequate indoor temperature and reducing primary care visits. No effects were found on self-perceived health or self-reported anxiety and depression. After the intervention, participants reported a decrease in arrears on utility bills, but less pronounced than in the comparison group. In conclusion,the study showed that information-based measures lead to psychosocial gains and reduced healthcare use. Nevertheless, the impact of these measures could be enhanced by combining them with policies and programmes that address the structural determinants of energy poverty.