From tradition to transition: The effect of clan culture on energy poverty

A deeper understanding of the nexus between traditional clan culture and energy poverty holds significant implications for advancing energy transition and improving human well-being. This paper investigates the role of clan culture, a deeply embedded element of China's historical heritage, in shaping patterns of energy poverty. Utilizing a national representative sample, we uncover that clan culture has a significantly negative effect on energy poverty. Specifically, a 10 % increase in the geographical density of clan culture is associated with an average reduction of 0.29 % in the probability of households experiencing energy poverty. The finding also implies that clan cultural effects could potentially lift approximately 1.43 million households, representing over 4.29 million individuals, out of energy poverty. Moreover, the impact of clan culture is more pronounced among Han Chinese populations compared to ethnic minority groups; the effect of the Clean Heating Plan in Northern Regions also varies substantially across regions with differing intensities of clan culture. Our findings suggest that clan culture helps form social capital through mechanisms such as resilience and supplements to formal institutions. We also conduct a series of robustness checks and employ an instrument variable approach to further support our findings. Our evidence calls the attention of policymakers to consider the interplay between formal and informal institutions when designing energy poverty interventions.