The impact of renewable and non-renewable energy aid on energy poverty in developing Asian countries

This study investigates the impact of energy aid on energy poverty from 2003 to 2022 in the case of Asian developing countries. More specifically, the contributions of energy aid in promoting the availability, accessibility, and consumption of energy are investigated in present study. This study utilized two types of energy aid—non-renewable and renewable—provided by the OECD to developing economies. Employing the Feasible Generalized Least Squares (FGLS) and Driscoll-Kraay estimation techniques, empirical findings demonstrate that energy aid plays a significant role in alleviating energy poverty. Specifically, renewable energy aid positively influences primary energy consumption, access to electricity, and electric power consumption. In contrast, non-renewable energy aid significantly increases primary energy usage and has a limited impact on renewable energy consumption. Additionally, environmental vulnerability contributes to increased energy consumption, access to electricity, and energy development, largely due to increased support in areas prone to climate risks. The study recommends that policymakers prioritize the efficient utilization of energy aid in ways that foster self-reliance in the energy sector. In particular, energy aid should be directed toward energy development programs in climate-vulnerable and underserved areas to ensure the effective eradication of energy poverty in the region.