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The power of remittances: Driving energy transformation in rural Chinese households

Author

Listed:
  • Mao, Hui
  • Liu, Meitong
  • Fu, Yong
  • Tang, Heyan

Abstract

Energy transitions serve as a critical driver of sustainable economic growth and social welfare. Identifying the factors that facilitate energy transitions is essential for alleviating energy poverty and promoting sustainable development. Using survey data from 744 rural households in China, this paper examines the impact of remittances on rural households' energy transitions and the underlying mechanisms. The results indicate that remittances significantly promote rural households' energy transitions. Specifically, remittances reduce reliance on primary energy while increasing consumption of transition energy and high-quality energy. Mechanism analysis further reveals that remittances facilitate this transition by alleviating financial constraints and enhancing the cognition of advanced energy benefits. Furthermore, heterogeneity analysis shows that the effect of remittances is more pronounced in aging rural households and those with lower educational attainment, indicating that remittances can help overcome transitions barriers related to aging and lower educational attainment.

Suggested Citation

  • Mao, Hui & Liu, Meitong & Fu, Yong & Tang, Heyan, 2026. "The power of remittances: Driving energy transformation in rural Chinese households," Energy Economics, Elsevier, vol. 157(C).
    • Handle: RePEc:eee:eneeco:v:157:y:2026:i:c:s0140988326001374
    DOI: 10.1016/j.eneco.2026.109258
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