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New Energy Demonstration Cities and the Mitigation of Energy Poverty in China

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  • You Wu

    (School of Economics, University of Sheffield, Sheffield S10 2TU, UK)

Abstract

China’s New Energy Demonstration Cities (NEDCs) sought to develop affordable, clean energy. This study therefore examines the NEDCs’ effectiveness in mitigating energy poverty (EP). We focus on electricity consumption, economic development, and renewable uptake – three components of International Energy Agency’s (IEA) measure of EP. Using panel data from 281 Chinese cities (2011-2021) and propensity score matching with difference-in-differences, the analysis found no statistically or economically significant overall effect of NEDCs on reducing EP. This is also consistent across the three IEA sub-components. The findings suggest this ineffectiveness may stem from weak enforcement, low public participation, and inequalities in income and education.

Suggested Citation

  • You Wu, 2026. "New Energy Demonstration Cities and the Mitigation of Energy Poverty in China," Working Papers 2026001, The University of Sheffield, Department of Economics.
    • Handle: RePEc:shf:wpaper:2026001
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    File URL: https://www.sheffield.ac.uk/economics/research/serps
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    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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