Does energy poverty affect subjective well-being? Evidence from a cross-country analysis

Although energy poverty has been confirmed to degrade the environment and cause health issues, studies have seldom focused on the relationship between energy poverty and subjective well-being (SWB) at a global level. Therefore, we investigate the effects of energy poverty on SWB using a quantile regression model and a panel autoregressive distributed lag model based on panel data of 56 countries from 2005 to 2019. The results indicate that the magnitude of energy poverty significantly vary across countries with different income levels. Lower middle-income countries have the highest levels of energy poverty, while high-income countries have the lowest levels. Energy poverty reduces SWB across all income groups, but lower middle-income countries are more affected than high-income countries. Specifically, the impact of energy poverty on the SWB of lower middle-income countries is approximately 2.8 times that of high-income countries. Additionally, the long-term impact of energy poverty on SWB is greater than its short-term impact. Therefore, efforts to address global energy poverty are urgently required. Importantly, countries that address energy poverty in a targeted manner align with their national conditions and characteristics, while leveraging their own advantages.