Environmental regulation and energy poverty: Straw-burning bans in China

This research uses data from the China Family Panel Study (CFPS) (2014–2020) to explore the impact of the straw-burning-ban policy on household energy poverty. Two dimensions of energy poverty are investigated: energy affordability, and energy transition (toward cleaner energy). Correspondingly, the Low-Income High-Cost (LIHC) method and energy cleanliness are adopted to depict the energy poverty of households. Our findings indicate the presence of heterogeneous effects from the straw-burning-ban policy on energy affordability and energy transition among rural Chinese households. We find that the policy has an adverse influence on energy affordability, while it contributes to a clean energy transition. Mechanism studies reveal that, although the policy does not significantly affect income or agricultural costs for rural households, it substantially increases their energy expenditures. The results also show some medium-term persistence through dynamic policy effects. Furthermore, this research holds practical significance for developing countries by aiding policymakers in better balancing environmental regulation with the livelihoods of households.