Does energy poverty affect agricultural technical efficiency? Evidence from small-scale farmers in China

While improving agricultural technical efficiency and alleviating energy poverty are vital components of sustainable development, existing research on the relationship between the two remains limited. This study aims to elucidate the effects and mechanisms of energy poverty on agricultural technical efficiency. The sample comprises small-scale farmers from the China Family Panel Studies, spanning from 2012 to 2018. Utilizing the two-stage least squares method to correct for the endogenous bias of energy poverty, our findings indicate that energy poverty reduces agricultural productivity by 11.7% to 47.8%, depending on the measurement method used. With a structural equation modelling approach, we find that the relationship between energy poverty and agricultural productivity is partially mediated by non-agricultural employment and land transfer, which contribute 3.72% to 30.86% to the total impact of energy poverty. Non-agricultural employment and land transfer hinder the improvement of agricultural technical efficiency in the process of alleviating energy poverty. The results and findings of this study yield significant policy implications for energy poverty alleviation and the enhancement of agricultural technical efficiency, which can be generalized to other developing countries. We examine the impact of energy poverty on the agricultural technical efficiency of smallholder.The spatial and temporal distribution of energy poverty incidence and agricultural technical efficiency exhibit distinct characteristics.Energy poverty generally results in decreased agricultural technical efficiency.Non-agricultural employment and land transfer hinder the improvement of agricultural technical efficiency in the process of alleviating energy poverty.