IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v176y2025i2d10.1007_s11205-024-03468-8.html
   My bibliography  Save this article

Energy Poverty and Social Welfare: Its Measurement Analysis and Moderating Mechanism Evaluation

Author

Listed:
  • Biying Dong

    (Tianjin University of Finance and Economics)

  • Yingzhi Xu

    (Southeast University)

Abstract

Energy poverty has become a significant global challenge, especially in China, the largest developing country, where the problem of energy poverty is more complex and diverse than that of developed countries. In this study, a Multidimensional Energy Poverty Index (MEPI) was constructed from three dimensions: energy-use level, structure, and capacity. Social welfare is quantified using the regional Development and Living Index (DLI) and the spatial effect of MEPI on social welfare is explored using a spatial Durbin model. The findings indicate that energy poverty has a detrimental impact on local and surrounding areas’ social welfare. The energy-use level poverty has the most pronounced negative spillover effect, followed by the energy-use structure poverty, while the energy-use capacity poverty has the weakest impact. Strategies such as high-efficiency energy structure and formal environmental regulation, can mitigate local welfare challenges. Moreover, low-carbon energy structure can mitigate surrounding areas’ welfare challenges. Additionally, the welfare effects of informal regulation and technological innovation have yet to be fully realized. Based on these conclusions, we provide recommendations to policy-makers on how to alleviate energy poverty and promote sustainable development. These include increasing funding for renewable energy projects in the central and western regions, promoting energy efficiency and consumption management in urban and industrial areas, enforcing environmental protection laws, fostering green technology innovation, and enhancing cooperation among regions.

Suggested Citation

  • Biying Dong & Yingzhi Xu, 2025. "Energy Poverty and Social Welfare: Its Measurement Analysis and Moderating Mechanism Evaluation," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 176(2), pages 593-627, January.
    • Handle: RePEc:spr:soinre:v:176:y:2025:i:2:d:10.1007_s11205-024-03468-8
    DOI: 10.1007/s11205-024-03468-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11205-024-03468-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11205-024-03468-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Uche-Soria, Manuel & Rodríguez-Monroy, Carlos, 2020. "Energy planning and its relationship to energy poverty in decision making. A first approach for the Canary Islands," Energy Policy, Elsevier, vol. 140(C).
    2. Xin Tang & Hua Liao, 2014. "Energy poverty and solid fuels use in rural China: Analysis based on national population census," CEEP-BIT Working Papers 57, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    3. Chen, Hao & Qi, Shaozhou & Zhang, Jihong, 2022. "Towards carbon neutrality with Chinese characteristics: From an integrated perspective of economic growth-equity-environment," Applied Energy, Elsevier, vol. 324(C).
    4. Sovacool, Benjamin K. & Dworkin, Michael H., 2015. "Energy justice: Conceptual insights and practical applications," Applied Energy, Elsevier, vol. 142(C), pages 435-444.
    5. Meghir, Costas & Palme, Mårten & Simeonova, Emilia, 2012. "Education, Health and Mortality: Evidence from a Social Experiment," IZA Discussion Papers 6462, Institute of Labor Economics (IZA).
    6. Mendoza, Celedonio B. & Cayonte, Dwane Darcy D. & Leabres, Michael S. & Manaligod, Lana Rose A., 2019. "Understanding multidimensional energy poverty in the Philippines," Energy Policy, Elsevier, vol. 133(C).
    7. 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.
    8. Fulvio Castellacci, 2023. "Innovation and social welfare: A new research agenda," Journal of Economic Surveys, Wiley Blackwell, vol. 37(4), pages 1156-1191, September.
    9. Fabio Grazi & Jeroen Bergh & Piet Rietveld, 2007. "Spatial welfare economics versus ecological footprint: modeling agglomeration, externalities and trade," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(1), pages 135-153, September.
    10. Gordon Rausser & Wadim Strielkowski & Grzegorz Mentel, 2023. "Consumer Attitudes toward Energy Reduction and Changing Energy Consumption Behaviors," Energies, MDPI, vol. 16(3), pages 1-5, February.
    11. Sharma, Sangeeta V. & Han, Phoumin & Sharma, Vinod K., 2019. "Socio-economic determinants of energy poverty amongst Indian households: A case study of Mumbai," Energy Policy, Elsevier, vol. 132(C), pages 1184-1190.
    12. Crentsil, Aba Obrumah & Asuman, Derek & Fenny, Ama Pokuaa, 2019. "Assessing the determinants and drivers of multidimensional energy poverty in Ghana," Energy Policy, Elsevier, vol. 133(C).
    13. Bing Wang & Yifan Wang & Yuqing Zhao, 2021. "Collaborative Governance Mechanism of Climate Change and Air Pollution: Evidence from China," Sustainability, MDPI, vol. 13(12), pages 1-16, June.
    14. Fu Wang & Hong Geng & Donglan Zha & Chaoqun Zhang, 2023. "Multidimensional Energy Poverty in China: Measurement and Spatio-Temporal Disparities Characteristics," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 168(1), pages 45-78, August.
    15. Patrick Nussbaumer & Francesco Fuso Nerini & Ijeoma Onyeji & Mark Howells, 2013. "Global Insights Based on the Multidimensional Energy Poverty Index (MEPI)," Sustainability, MDPI, vol. 5(5), pages 1-17, May.
    16. Dong, Kangyin & Jiang, Qingzhe & Shahbaz, Muhammad & Zhao, Jun, 2021. "Does low-carbon energy transition mitigate energy poverty? The case of natural gas for China," Energy Economics, Elsevier, vol. 99(C).
    17. Wang, Ke & Wang, Ya-Xuan & Li, Kang & Wei, Yi-Ming, 2015. "Energy poverty in China: An index based comprehensive evaluation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 308-323.
    18. Zhang, Ziyu & Shu, Hongting & Yi, Hong & Wang, Xiaohua, 2021. "Household multidimensional energy poverty and its impacts on physical and mental health," Energy Policy, Elsevier, vol. 156(C).
    19. Straub, Stéphane & Terada-Hagiwara, Akiko, 2011. "Infrastructure and Growth in Developing Asia," Asian Development Review, Asian Development Bank, vol. 28(1), pages 119-156.
    20. Che, Xiahui & Zhu, Bangzhu & Wang, Ping, 2021. "Assessing global energy poverty: An integrated approach," Energy Policy, Elsevier, vol. 149(C).
    21. Ahmed, Abubakari & Gasparatos, Alexandros, 2020. "Multi-dimensional energy poverty patterns around industrial crop projects in Ghana: Enhancing the energy poverty alleviation potential of rural development strategies," Energy Policy, Elsevier, vol. 137(C).
    22. Zhao, Jun & Jiang, Qingzhe & Dong, Xiucheng & Dong, Kangyin, 2021. "Assessing energy poverty and its effect on CO2 emissions: The case of China," Energy Economics, Elsevier, vol. 97(C).
    23. Aparajita Goyal, 2010. "Information, Direct Access to Farmers, and Rural Market Performance in Central India," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 22-45, July.
    24. Oum, Sothea, 2019. "Energy poverty in the Lao PDR and its impacts on education and health," Energy Policy, Elsevier, vol. 132(C), pages 247-253.
    25. Audrey Dobbins & Francesco Fuso Nerini & Paul Deane & Steve Pye, 2019. "Strengthening the EU response to energy poverty," Nature Energy, Nature, vol. 4(1), pages 2-5, January.
    26. John Hills, 2011. "Fuel Poverty: The problem and its measurement. Interim Report of the Fuel Poverty Review," CASE Reports casereport69, Centre for Analysis of Social Exclusion, LSE.
    27. Stefan Bouzarovski, 2014. "Energy poverty in the European Union: landscapes of vulnerability," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 3(3), pages 276-289, May.
    28. Li, Weiqing & Chien, Fengsheng & Hsu, Ching-Chi & Zhang, YunQian & Nawaz, Muhammad Atif & Iqbal, Sajid & Mohsin, Muhammad, 2021. "Nexus between energy poverty and energy efficiency: Estimating the long-run dynamics," Resources Policy, Elsevier, vol. 72(C).
    29. Chakravarty, Shoibal & Tavoni, Massimo, 2013. "Energy poverty alleviation and climate change mitigation: Is there a trade off?," Energy Economics, Elsevier, vol. 40(S1), pages 67-73.
    30. Zhang, Dayong & Li, Jiajia & Han, Phoumin, 2019. "A multidimensional measure of energy poverty in China and its impacts on health: An empirical study based on the China family panel studies," Energy Policy, Elsevier, vol. 131(C), pages 72-81.
    31. Stéphane Straub & Akiko Terada-Hagiwara, 2011. "Infrastructure and Growth in Developing Asia," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 28(01), pages 119-156, June.
    32. Scarpellini, Sabina & Alexia Sanz Hernández, M. & Moneva, José M. & Portillo-Tarragona, Pilar & Rodríguez, María Esther López, 2019. "Measurement of spatial socioeconomic impact of energy poverty," Energy Policy, Elsevier, vol. 124(C), pages 320-331.
    33. Sambodo, Maxensius Tri & Novandra, Rio, 2019. "The state of energy poverty in Indonesia and its impact on welfare," Energy Policy, Elsevier, vol. 132(C), pages 113-121.
    34. Okushima, Shinichiro, 2017. "Gauging energy poverty: A multidimensional approach," Energy, Elsevier, vol. 137(C), pages 1159-1166.
    35. Phoumin, Han & Kimura, Fukunari, 2019. "Cambodia's energy poverty and its effects on social wellbeing: Empirical evidence and policy implications," Energy Policy, Elsevier, vol. 132(C), pages 283-289.
    36. Yingzhi Xu & Biying Dong & Yan Chen & Hanwen Qin, 2022. "Effect of industrial transfer on carbon lock-in: a spatial econometric analysis of Chinese cities," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 65(6), pages 1024-1055, May.
    37. Ang'u, Cohen & Muthama, Nzioka John & Mutuku, Mwanthi Alexander & M’IKiugu, Mutembei Henry, 2023. "Analysis of energy poverty in Kenya and its implications for human health," Energy Policy, Elsevier, vol. 176(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tiwari, Sunil & Si Mohammed, Kamel & Guesmi, Khaled, 2023. "A way forward to end energy poverty in China: Role of carbon-cutting targets and net-zero commitments," Energy Policy, Elsevier, vol. 180(C).
    2. Dong, Kangyin & Ren, Xiaohang & Zhao, Jun, 2021. "How does low-carbon energy transition alleviate energy poverty in China? A nonparametric panel causality analysis," Energy Economics, Elsevier, vol. 103(C).
    3. Ang'u, Cohen & Muthama, Nzioka John & Mutuku, Mwanthi Alexander & M’IKiugu, Mutembei Henry, 2023. "Analysis of energy poverty in Kenya and its implications for human health," Energy Policy, Elsevier, vol. 176(C).
    4. Lan, Jing & Khan, Sufyan Ullah & Sadiq, Muhammad & Chien, Fengsheng & Baloch, Zulfiqar Ali, 2022. "Evaluating energy poverty and its effects using multi-dimensional based DEA-like mathematical composite indicator approach: Findings from Asia," Energy Policy, Elsevier, vol. 165(C).
    5. Recep Ulucak & Ramazan Sari & Seyfettin Erdogan & Rui Alexandre Castanho, 2021. "Bibliometric Literature Analysis of a Multi-Dimensional Sustainable Development Issue: Energy Poverty," Sustainability, MDPI, vol. 13(17), pages 1-21, August.
    6. Junhong Qu & Xiaoli Hao, 2022. "Digital Economy, Financial Development, and Energy Poverty Based on Mediating Effects and a Spatial Autocorrelation Model," Sustainability, MDPI, vol. 14(15), pages 1-24, July.
    7. Huang, Yatao & Jiao, Wenxian & Wang, Kang & Li, Erling & Yan, Yutong & Chen, Jingyang & Guo, Xuanxuan, 2022. "Examining the multidimensional energy poverty trap and its determinants: An empirical analysis at household and community levels in six provinces of China," Energy Policy, Elsevier, vol. 169(C).
    8. Liu, Zhong & Zhou, Zuanjiu & Liu, Chang, 2023. "Estimating the impact of rural centralized residence policy interventions on energy poverty in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 187(C).
    9. Awan, Ashar & Bilgili, Faik & Rahut, Dil Bahadur, 2022. "Energy poverty trends and determinants in Pakistan: Empirical evidence from eight waves of HIES 1998–2019," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    10. Shahzad, Umer & Gupta, Mansi & Sharma, Gagan Deep & Rao, Amar & Chopra, Ritika, 2022. "Resolving energy poverty for social change: Research directions and agenda," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    11. Fu Wang & Hong Geng & Donglan Zha & Chaoqun Zhang, 2023. "Multidimensional Energy Poverty in China: Measurement and Spatio-Temporal Disparities Characteristics," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 168(1), pages 45-78, August.
    12. Dong, Kangyin & Dou, Yue & Jiang, Qingzhe, 2022. "Income inequality, energy poverty, and energy efficiency: Who cause who and how?," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    13. Qurat-ul-Ann, Abre-Rehmat & Mirza, Faisal Mehmood, 2020. "Meta-analysis of empirical evidence on energy poverty: The case of developing economies," Energy Policy, Elsevier, vol. 141(C).
    14. Wang, Xiong & Yang, Wanping & Ren, Xiaohang & Lu, Zudi, 2023. "Can financial inclusion affect energy poverty in China? Evidence from a spatial econometric analysis," International Review of Economics & Finance, Elsevier, vol. 85(C), pages 255-269.
    15. Siksnelyte-Butkiene, Indre & Streimikiene, Dalia & Balezentis, Tomas, 2022. "Addressing sustainability issues in transition to carbon-neutral sustainable society with multi-criteria analysis," Energy, Elsevier, vol. 254(PA).
    16. Muhammad Shafiullah & Zhilun Jiao & Muhammad Shahbaz & Kangyin Dong, 2023. "Examining energy poverty in Chinese households: An Engel curve approach," Australian Economic Papers, Wiley Blackwell, vol. 62(1), pages 149-184, March.
    17. Zhao, Jun & Dong, Kangyin & Dong, Xiucheng, 2024. "How does energy poverty eradication affect global carbon neutrality?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 191(C).
    18. Lozano, Lorafe & Taboada, Evelyn B., 2020. "Demystifying the authentic attributes of electricity-poor populations: The electrification landscape of rural off-grid island communities in the Philippines," Energy Policy, Elsevier, vol. 145(C).
    19. Zhang, Quanda & Appau, Samuelson & Kodom, Peter Lord, 2021. "Energy poverty, children's wellbeing and the mediating role of academic performance: Evidence from China," Energy Economics, Elsevier, vol. 97(C).
    20. Dong, Kangyin & Taghizadeh-Hesary, Farhad & Zhao, Jun, 2022. "How inclusive financial development eradicates energy poverty in China? The role of technological innovation," Energy Economics, Elsevier, vol. 109(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:soinre:v:176:y:2025:i:2:d:10.1007_s11205-024-03468-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.