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How renewable energy alleviate energy poverty? A global analysis

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  • Zhao, Jun
  • Dong, Kangyin
  • Dong, Xiucheng
  • Shahbaz, Muhammad

Abstract

The development of renewable energy industry is an important measure for countries to strengthen the construction of ecological civilization. Thus, to empirically investigate the underlying effect of renewable energy consumption on global energy poverty alleviation, we first assess the energy poverty composite index across the globe, and then explore whether the rapid development of renewable energy industry can help alleviate energy poverty. The regional heterogeneity and the mediating role of energy efficiency in the renewable energy-poverty alleviation nexus are also discussed. We conclude that: (1) Global energy poverty shows a significant trend of allevia.tion in the sample period, and rapid development of renewable energy industry can help alleviate energy poverty; (2) significant regional heterogeneity exists in the relationship between renewable energy and poverty alleviation. Only in European countries can increased renewable energy significantly reduce energy poverty; and (3) the mediating role of energy efficiency in the renewable energy-poverty alleviation nexus is significant; in other words, renewable energy not only directly alleviates global energy poverty, but also has a significant inhibiting effect on energy poverty by improving energy efficiency. Following the above three conclusions, we provide relevant policies about how to alleviate energy poverty and improve energy efficiency.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:renene:v:186:y:2022:i:c:p:299-311
    DOI: 10.1016/j.renene.2022.01.005
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    Keywords

    Energy poverty; Renewable energy; Heterogeneous analysis; Mediation effect; Globe analysis;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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