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Is Digital Development the Answer to Energy Poverty? Evidence from China

Author

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  • Yaofeng Yang

    (Northwest Institute of Historical Environment and Socio-Economic Development, Shaanxi Normal University, Xi’an 710119, China
    These authors contributed equally to this work.)

  • Xiuqing Li

    (Northwest Institute of Historical Environment and Socio-Economic Development, Shaanxi Normal University, Xi’an 710119, China
    These authors contributed equally to this work.)

  • Luping Li

    (Northwest Institute of Historical Environment and Socio-Economic Development, Shaanxi Normal University, Xi’an 710119, China)

  • Lan Fang

    (Northwest Institute of Historical Environment and Socio-Economic Development, Shaanxi Normal University, Xi’an 710119, China
    Leibniz Institute of Agricultural Development in Transition Economies (IAMO), 06120 Halle (Saale), Germany)

  • Yajuan Chen

    (School of Economics and Management, Inner Mongolia Normal University, Hohhot 010022, China)

  • Nde Ivo Zama

    (Northwest Institute of Historical Environment and Socio-Economic Development, Shaanxi Normal University, Xi’an 710119, China)

Abstract

Energy poverty is one of the major challenges to global sustainable development, while digital development, as a significant trend of the current era, is considered a key pathway to transcend traditional energy governance frameworks. Anchored in provincial panel data spanning 30 regions across China from 2003 to 2023, this study systematically examines the impact and heterogeneity of digital development on energy poverty and further explores the underlying mechanisms and nonlinear characteristics. The findings show that digital development can significantly alleviate energy poverty, and this conclusion remains valid after addressing endogeneity issues and conducting a series of robustness tests. However, the poverty reduction effect of digital development exhibits significant regional heterogeneity: the mitigation effect in central and western regions is significantly stronger than that in eastern regions, the effect in northern regions is higher than that in southern regions, and the effect in energy-disadvantaged regions is better than that in advantageous regions. Additionally, digital development alleviates energy poverty through mediating pathways such as promoting non-agricultural employment, improving human capital levels, and driving technological innovation. Notably, digital development demonstrates threshold effects and quantile heterogeneity in relation to energy poverty, characterized by diminishing marginal returns as digital development progresses; regions with higher levels of energy poverty experience more significant poverty reduction effects from digital development. This research provides a theoretical basis for energy poverty governance under the global energy crisis and offers empirical references for other countries to achieve energy sustainability goals (SDG7) through context-specific digital transformations.

Suggested Citation

  • Yaofeng Yang & Xiuqing Li & Luping Li & Lan Fang & Yajuan Chen & Nde Ivo Zama, 2025. "Is Digital Development the Answer to Energy Poverty? Evidence from China," Energies, MDPI, vol. 18(20), pages 1-43, October.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:20:p:5330-:d:1767823
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