IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v200y2025ics0301421525000606.html
   My bibliography  Save this article

Towards sustainable energy access: Investigating the relationship between renewable energy consumption and energy poverty

Author

Listed:
  • P, Jithin
  • R, Renjith

Abstract

Given the global push for renewable energy to achieve sustainable development goals, understanding its implications for energy poverty is crucial. This study addresses a gap in the literature by examining how renewable energy affects two key energy poverty indicators: access to electricity and access to clean cooking fuel, particularly in rural and urban contexts. We employ bootstrap based bias corrected fixed effects model to examine the impact of renewable energy consumption on energy poverty across 80 economies from 1996 to 2020. The analysis demonstrates that renewable energy consumption is negatively associated with electricity access, particularly in urban areas. The emphasis on renewable energy adoption can hinder access to clean cooking fuels in rural areas. These findings highlight the need for targeted policy interventions that address the unique challenges of both urban and rural regions. To mitigate potential negative effects, policymakers should invest in energy storage, grid modernization, and decentralized systems, while ensuring that renewable energy initiatives align with broader sustainable development goals.

Suggested Citation

  • P, Jithin & R, Renjith, 2025. "Towards sustainable energy access: Investigating the relationship between renewable energy consumption and energy poverty," Energy Policy, Elsevier, vol. 200(C).
  • Handle: RePEc:eee:enepol:v:200:y:2025:i:c:s0301421525000606
    DOI: 10.1016/j.enpol.2025.114553
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421525000606
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.enpol.2025.114553?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David I. Stern and Astrid Kander, 2012. "The Role of Energy in the Industrial Revolution and Modern Economic Growth," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    2. Iimura, Akiko & Cross, Jeffrey S., 2018. "The impact of renewable energy on household electricity prices in liberalized electricity markets: A cross-national panel data analysis," Utilities Policy, Elsevier, vol. 54(C), pages 96-106.
    3. Stefan Bouzarovski & Sergio Tirado Herrero, 2017. "Geographies of injustice: the socio-spatial determinants of energy poverty in Poland, the Czech Republic and Hungary," Post-Communist Economies, Taylor & Francis Journals, vol. 29(1), pages 27-50, January.
    4. González-Eguino, Mikel, 2015. "Energy poverty: An overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 377-385.
    5. Dong, Kangyin & Ren, Xiaohang & Zhao, Jun, 2021. "How does low-carbon energy transition alleviate energy poverty in China? A nonparametric panel causality analysis," Energy Economics, Elsevier, vol. 103(C).
    6. Mihaela Simionescu & Magdalena Rădulescu & Javier Cifuentes-Faura, 2023. "Renewable Energy Consumption-Growth Nexus in European Countries: A Sectoral Approach," Evaluation Review, , vol. 47(2), pages 287-319, April.
    7. Bouzarovski, Stefan & Simcock, Neil, 2017. "Spatializing energy justice," Energy Policy, Elsevier, vol. 107(C), pages 640-648.
    8. Topcu, Mert & Tugcu, Can Tansel, 2020. "The impact of renewable energy consumption on income inequality: Evidence from developed countries," Renewable Energy, Elsevier, vol. 151(C), pages 1134-1140.
    9. Caleb Wright & Roger Sathre & Shashi Buluswar, 2020. "The global challenge of clean cooking systems," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(6), pages 1219-1240, December.
    10. Shahbaz, Muhammad & Siddiqui, Aaliyah & Sinha, Avik & Bigerna, Simona, 2024. "Does financial development enhance access to electricity? A rural-urban perspective in India," Energy, Elsevier, vol. 291(C).
    11. Roberts, Deborah & Vera-Toscano, Esperanza & Phimister, Euan, 2015. "Energy poverty in the UK: Is there a difference between rural and urban areas?," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204213, Agricultural Economics Society.
    12. Thomson, Harriet & Snell, Carolyn, 2013. "Quantifying the prevalence of fuel poverty across the European Union," Energy Policy, Elsevier, vol. 52(C), pages 563-572.
    13. Zhao, Jun & Dong, Kangyin & Dong, Xiucheng & Shahbaz, Muhammad, 2022. "How renewable energy alleviate energy poverty? A global analysis," Renewable Energy, Elsevier, vol. 186(C), pages 299-311.
    14. Zubi, Ghassan & Fracastoro, Gian Vincenzo & Lujano-Rojas, Juan M. & El Bakari, Khalil & Andrews, David, 2019. "The unlocked potential of solar home systems; an effective way to overcome domestic energy poverty in developing regions," Renewable Energy, Elsevier, vol. 132(C), pages 1425-1435.
    15. World Bank, 2002. "World Development Report 2002," World Bank Publications - Books, The World Bank Group, number 5984, April.
    16. Sharma, Sangeeta V. & Han, Phoumin & Sharma, Vinod K., 2019. "Socio-economic determinants of energy poverty amongst Indian households: A case study of Mumbai," Energy Policy, Elsevier, vol. 132(C), pages 1184-1190.
    17. Mirza, Umar K. & Ahmad, Nasir & Harijan, Khanji & Majeed, Tariq, 2009. "Identifying and addressing barriers to renewable energy development in Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(4), pages 927-931, May.
    18. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    19. World Bank, 2002. "The World Bank Annual Report 2002," World Bank Publications - Books, The World Bank Group, number 13931, April.
    20. Barnes, Douglas F. & Khandker, Shahidur R. & Samad, Hussain A., 2011. "Energy poverty in rural Bangladesh," Energy Policy, Elsevier, vol. 39(2), pages 894-904, February.
    21. Everaert, Gerdie & Pozzi, Lorenzo, 2007. "Bootstrap-based bias correction for dynamic panels," Journal of Economic Dynamics and Control, Elsevier, vol. 31(4), pages 1160-1184, April.
    22. Pan, Lei & Biru, Ashenafi & Lettu, Sandra, 2021. "Energy poverty and public health: Global evidence," Energy Economics, Elsevier, vol. 101(C).
    23. Oscar S. Santillán & Karla G. Cedano & Manuel Martínez, 2020. "Analysis of Energy Poverty in 7 Latin American Countries Using Multidimensional Energy Poverty Index," Energies, MDPI, vol. 13(7), pages 1-19, April.
    24. Sadath, Anver C. & Acharya, Rajesh H., 2017. "Assessing the extent and intensity of energy poverty using Multidimensional Energy Poverty Index: Empirical evidence from households in India," Energy Policy, Elsevier, vol. 102(C), pages 540-550.
    25. Okushima, Shinichiro, 2017. "Gauging energy poverty: A multidimensional approach," Energy, Elsevier, vol. 137(C), pages 1159-1166.
    26. Awaworyi Churchill, Sefa & Smyth, Russell, 2021. "Energy poverty and health: Panel data evidence from Australia," Energy Economics, Elsevier, vol. 97(C).
    27. World Bank, 2002. "The World Bank Annual Report 2002," World Bank Publications - Books, The World Bank Group, number 13932, April.
    28. Lee, Chien-Chiang & Yuan, Zihao, 2024. "Impact of energy poverty on public health: A non-linear study from an international perspective," World Development, Elsevier, vol. 174(C).
    29. Henry, Candise L. & Baker, Justin S. & Shaw, Brooke K. & Kondash, Andrew J. & Leiva, Benjamín & Castellanos, Edwin & Wade, Christopher M. & Lord, Benjamin & Van Houtven, George & Redmon, Jennifer Hopo, 2021. "How will renewable energy development goals affect energy poverty in Guatemala?," Energy Economics, Elsevier, vol. 104(C).
    30. Drago, Carlo & Gatto, Andrea, 2023. "Gauging energy poverty in developing countries with a composite metric of electricity access," Utilities Policy, Elsevier, vol. 81(C).
    31. Kiviet, Jan F., 1995. "On bias, inconsistency, and efficiency of various estimators in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 68(1), pages 53-78, July.
    32. Sharma, Susan Sunila, 2010. "The relationship between energy and economic growth: Empirical evidence from 66 countries," Applied Energy, Elsevier, vol. 87(11), pages 3565-3574, November.
    33. Winkler, Harald & Simões, André Felipe & Rovere, Emilio Lèbre la & Alam, Mozaharul & Rahman, Atiq & Mwakasonda, Stanford, 2011. "Access and Affordability of Electricity in Developing Countries," World Development, Elsevier, vol. 39(6), pages 1037-1050, June.
    34. Wang, Qiang & Kwan, Mei-Po & Fan, Jie & Lin, Jian, 2021. "Racial disparities in energy poverty in the United States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    35. Lorde, Troy & Waithe, Kimberly & Francis, Brian, 2010. "The importance of electrical energy for economic growth in Barbados," Energy Economics, Elsevier, vol. 32(6), pages 1411-1420, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Recep Ulucak & Ramazan Sari & Seyfettin Erdogan & Rui Alexandre Castanho, 2021. "Bibliometric Literature Analysis of a Multi-Dimensional Sustainable Development Issue: Energy Poverty," Sustainability, MDPI, vol. 13(17), pages 1-21, August.
    2. Awan, Ashar & Bilgili, Faik & Rahut, Dil Bahadur, 2022. "Energy poverty trends and determinants in Pakistan: Empirical evidence from eight waves of HIES 1998–2019," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    3. Bezerra, Paula & Cruz, Talita & Mazzone, Antonella & Lucena, André F.P. & De Cian, Enrica & Schaeffer, Roberto, 2022. "The multidimensionality of energy poverty in Brazil: A historical analysis," Energy Policy, Elsevier, vol. 171(C).
    4. Ujang Hendra Gunawan & Nuraeni Kadir & Abdul Rahman Kadir & Muhammad Sobarsyah & Sabbar Dahham Sabbar, 2024. "Regional Disparities in the Efficacy of Renewable Energy Development for Alleviating Energy Poverty in Indonesia: An In-depth Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 14(6), pages 254-269, November.
    5. Zhao, Jun & Dong, Kangyin & Dong, Xiucheng & Shahbaz, Muhammad, 2022. "How renewable energy alleviate energy poverty? A global analysis," Renewable Energy, Elsevier, vol. 186(C), pages 299-311.
    6. Shahzad, Umer & Gupta, Mansi & Sharma, Gagan Deep & Rao, Amar & Chopra, Ritika, 2022. "Resolving energy poverty for social change: Research directions and agenda," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    7. Tiwari, Sunil & Si Mohammed, Kamel & Guesmi, Khaled, 2023. "A way forward to end energy poverty in China: Role of carbon-cutting targets and net-zero commitments," Energy Policy, Elsevier, vol. 180(C).
    8. Lan, Jing & Khan, Sufyan Ullah & Sadiq, Muhammad & Chien, Fengsheng & Baloch, Zulfiqar Ali, 2022. "Evaluating energy poverty and its effects using multi-dimensional based DEA-like mathematical composite indicator approach: Findings from Asia," Energy Policy, Elsevier, vol. 165(C).
    9. Simionescu, Mihaela & Radulescu, Magdalena & Cifuentes-Faura, Javier & Balsalobre-Lorente, Daniel, 2023. "The role of renewable energy policies in TACKLING energy poverty in the European UNION," Energy Policy, Elsevier, vol. 183(C).
    10. Tikadar, Biswajit & Swami, Deepika, 2025. "Understanding the variability of residential energy poverty in India," Utilities Policy, Elsevier, vol. 93(C).
    11. Li, Zhiqun & Xie, Shang & Wei, Dongming, 2025. "Household energy poverty and personal time allocation: Empirical evidence from China," Utilities Policy, Elsevier, vol. 93(C).
    12. Kahouli, Sondès & Okushima, Shinichiro, 2021. "Regional energy poverty reevaluated: A direct measurement approach applied to France and Japan," Energy Economics, Elsevier, vol. 102(C).
    13. Gu, Jiafeng, 2023. "Energy poverty and government subsidies in China," Energy Policy, Elsevier, vol. 180(C).
    14. Lin, Boqiang & Wang, Yao, 2020. "Does energy poverty really exist in China? From the perspective of residential electricity consumption," Energy Policy, Elsevier, vol. 143(C).
    15. Dong, Kangyin & Dou, Yue & Jiang, Qingzhe, 2022. "Income inequality, energy poverty, and energy efficiency: Who cause who and how?," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    16. Henry, Candise L. & Baker, Justin S. & Shaw, Brooke K. & Kondash, Andrew J. & Leiva, Benjamín & Castellanos, Edwin & Wade, Christopher M. & Lord, Benjamin & Van Houtven, George & Redmon, Jennifer Hopo, 2021. "How will renewable energy development goals affect energy poverty in Guatemala?," Energy Economics, Elsevier, vol. 104(C).
    17. Makridou, Georgia & Matsumoto, Ken’ichi & Doumpos, Michalis, 2024. "Evaluating the energy poverty in the EU countries," Energy Economics, Elsevier, vol. 140(C).
    18. Khalid, Usman & Shafiullah, Muhammad & Chaudhry, Sajid M., 2024. "Does conflict aggravate energy poverty?," Energy Policy, Elsevier, vol. 194(C).
    19. Muhammad, Sulaman & Pan, Yanchun & Ke, Xiao & Agha, Mujtaba Hassan & Borah, Prasad Siba & Akhtar, Muhammad, 2023. "European transition toward climate neutrality: Is renewable energy fueling energy poverty across Europe?," Renewable Energy, Elsevier, vol. 208(C), pages 181-190.
    20. Simionescu, Mihaela & Cifuentes-Faura, Javier, 2024. "The digital economy and energy poverty in Central and Eastern Europe," Utilities Policy, Elsevier, vol. 91(C).

    More about this item

    Keywords

    Energy poverty; Renewable energy; Dynamic bootstrap-corrected fixed effects model; Access to electricity;
    All these keywords.

    JEL classification:

    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:200:y:2025:i:c:s0301421525000606. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.