Trade liberalization, factor network association, and energy poverty

Energy poverty remains a major constraint on both effective global climate governance and economic development. Enhancing trade liberalization to strengthen regional network association and reduce barriers to the cross-border flow of energy-related factors has become a key strategy for addressing this issue. Drawing on panel data from 145 countries over the period 2007–2022, this study develops a composite indicator of energy poverty, covering aspects such as access to energy services, consumption cleanliness, and cost burden. The empirical analysis explores how trade liberalization influences energy poverty and finds a notable mitigating effect. This outcome remains consistent across various robustness checks. Moreover, the impact is especially evident in economies with stronger institutions, greater state involvement, and deeper integration into global value chains. Mechanism analysis reveals that trade liberalization mitigates energy poverty by reinforcing the interconnectedness of regional energy trade networks, investment networks, and technological innovation networks. These findings offer both theoretical insight and empirical support for building a more resilient and inclusive global energy governance framework—one capable of effectively addressing energy security challenges and advancing a just transition toward sustainable energy system.