Can renewable energy development alleviate household energy poverty? Evidence from household survey data in China

While renewable energy is central to global climate goals, its distributional impact on household energy poverty in developing economies remains underexplored. Combining household-level data from the China Family Panel Studies with a city-level renewable energy index, this study quantifies the effect of renewable energy development on energy poverty in China. The study finds that: (1) City-level renewable energy development significantly reduces the likelihood of energy poverty among Chinese households, and this result remains robust to tests addressing endogeneity, measurement validity, model specification, and confounding policy factors. (2) The poverty-reducing effect is most pronounced in regions with abundant solar resources and favorable hydropower potential, as well as in western regions and economically underdeveloped areas. (3) Mechanism analysis suggests that renewable energy development may alleviate energy poverty by increasing household income, improving air quality in initially more polluted cities, and enhancing energy infrastructure. (4) Further evidence indicates that renewable energy is associated with lower energy poverty from both “generation” and “consumption” perspectives, with hydropower showing the most robust contribution. These findings provide empirical evidence for assessing the social consequences of renewable energy transitions and inform the design of equitable energy policies in developing economies.