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

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  • 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
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