Does China's outward foreign direct investment alleviate energy poverty in host countries? Evidence from countries along the belt and road initiative

Energy poverty is a huge global challenge. The “Belt and Road' initiative of China has facilitated extensive and deep-level energy cooperation with countries through outward foreign direct investment (OFDI). This study selects 80 countries along the “Belt and Road' from 2006 to 2018 as research samples, and evaluate the changing trends of energy poverty in these countries. A spatial Durbin model (SDM) is employed to examine the alleviation of energy poverty in host countries by China's OFDI and its influencing pathways. The research findings indicate that: Firstly, the overall energy poverty situation in countries along the “Belt and Road' has shown a decreasing trend from 2006 to 2018. However, countries in sub-Saharan Africa, South Asia, and West Asia still face severe energy poverty, mainly due to lagging energy infrastructure development and inadequate utilization of clean energy. Secondly, China's OFDI and its spatial spillover effects can alleviate local energy poverty by enhancing energy accessibility, improving energy infrastructure, and increasing energy supply levels. The spillover effects significantly alleviate energy accessibility, cleanliness, and modernity in these countries. The findings have positive implications for advancing the “Belt and Road' initiative, deepening international energy cooperation, and alleviating energy poverty in these countries.