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Cash transfers and the Han-Minority household energy poverty gap in rural China

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  • Howell, Anthony

Abstract

This paper investigates the impact of cash transfers from China’s national minimum income program on multidimensional household energy poverty in rural China. A fuzzy regression discontinuity (FRD) design is applied to a unique, representative sample of ethnically diverse households from China’s underdeveloped inland areas. The paper first presents descriptive evidence revealing, for the first time, a significant ethnic-based energy poverty gap between Han and ethnic minority households. The FRD analysis shows that cash transfers significantly reduce energy poverty, particularly among ethnic minorities, thereby narrowing this gap. The findings are explained by the concept of fuel stacking: as household income increases through cash transfers, beneficiaries shift from reliance on biomass to investing in modern energy sources, meeting higher energy demands and improving health. These results indicate that cash transfer programs are effective not only in reducing energy poverty but also in promoting a more equitable energy transition.

Suggested Citation

  • Howell, Anthony, 2025. "Cash transfers and the Han-Minority household energy poverty gap in rural China," Energy Economics, Elsevier, vol. 141(C).
    • Handle: RePEc:eee:eneeco:v:141:y:2025:i:c:s0140988324007187
    DOI: 10.1016/j.eneco.2024.108010
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    More about this item

    Keywords

    Cash transfers; Energy poverty and uses; Ethnic disparities; China;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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