Does the disparity between rural and urban incomes affect rural energy poverty?
wang Y. Umair M. Aizhan A. Teymurova V. Chang L.
November 2024Elsevier Ltd
Energy Strategy Reviews
2024#56
The persistent disparity between urban and rural incomes in China poses a critical challenge to alleviating energy poverty in rural areas. This study investigates how the income gap between urban and rural regions exacerbates rural energy poverty, focusing on the period from 2005 to 2023, utilizing data from 30 provinces. By employing a two-way fixed-effects model and asymmetry analysis, the research reveals that an increase in the urban-rural income disparity significantly intensifies rural energy poverty. Notably, at higher income quantiles, the gaps effect on energy poverty is more pronounced, while at lower quantiles, its impact is less severe. Financial development, rather than alleviating the situation, is positively associated with rural energy poverty, highlighting an unintended consequence of unequal access to financial services. The results further show that rural regions with limited financial inclusion experience a deepening of energy poverty, with financial service accessibility benefiting wealthier demographics more than the impoverished rural population. These findings imply that targeted policies promoting equitable financial access, narrowing income disparities, and integrating energy poverty reduction strategies are essential to achieving Chinas Rural Revitalization Strategy.
China , Energy poverty reduction strategies , Financial development , Rural energy poverty , Two-way fixed-effects model , Urban-rural income disparity
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School of Agricultural Economics and Rural Development, Renmin University of China, China
Department of Economics, Ghazi University, Punjab, Dera Ghazi Khan, Pakistan
Al-Farabi Kazakh National University, Almaty, Kazakhstan
Faculty of Economy and Management, Azerbaijan State University of Economics(UNEC), Baku, Azerbaijan
Yanshan University, China
Department of Economics, Tashkent State University of Economics, Uzbekistan
School of Agricultural Economics and Rural Development
Department of Economics
Al-Farabi Kazakh National University
Faculty of Economy and Management
Yanshan University
Department of Economics
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