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Energy poverty vs. climate risk: Unveiling threats to global and regional human development

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  • Zhang, Liyuan
  • Xiang, Ruilin
  • Liao, Bowen
  • Yang, Qiming

Abstract

Energy poverty (EPOV) and climate risk (CLR) are the most pressing challenges for attaining sustainable global development. Existing studies focused on temperature shocks or emission levels and inaccessibility to electricity as threats for socio-economic development. Our study extended current body of literature by using a broader measurement of climate risk determining physical risks and broader measurement of energy poverty. Considering these important and ignored aspects, our study examines a large data panel of 109 countries from 2022 using static and dynamic panel data models. The empirical analysis confirmed that EPOV and CLR negatively affect global human development but in comparison, CLR is more destructive and challenging for human development. In regional comparison of these estimates, both these factors negatively affect human development but in regional comparison, African human development is highly influenced by EPOV than in all other regions. In comparison, CLR affects more Asian regions than all others. This study further found that industrialization and renewable energy consumption improve human development while increasing energy intensity and income poverty declines human development. This study offers valuable insights for improving human development through energy poverty alleviation and climate risk reduction at global and regional levels.

Suggested Citation

  • Zhang, Liyuan & Xiang, Ruilin & Liao, Bowen & Yang, Qiming, 2025. "Energy poverty vs. climate risk: Unveiling threats to global and regional human development," Energy, Elsevier, vol. 339(C).
    • Handle: RePEc:eee:energy:v:339:y:2025:i:c:s036054422504589x
    DOI: 10.1016/j.energy.2025.138947
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