Enlarged scars: The effects of economic policy uncertainty on electricity accessibility and urban-rural disparity
Zhao C. Zhai X. Tao M. Che S.
December 2024Elsevier Ltd
Utilities Policy
2024#91
Using a comprehensive dataset spanning 22 countries from 2000 to 2020, this study investigates the influence of economic policy uncertainty on electricity accessibility and the urban-rural gap in accessibility, employing a fixed-effect model. Our research provides several new contributions to the existing body of knowledge. First, heightened economic policy uncertainty is linked to reduced electricity access in both urban and rural areas, and it also correlates with an increase in the disparity between these regions. Second, the relationship between economic policy uncertainty and electricity access is not uniform across different levels of accessibility. Specifically, a negative relationship is evident when accessibility is low, but this effect becomes insignificant when access levels surpass the median (50th quantile). While the positive association between economic policy uncertainty and the urban-rural gap is present, it does not intensify as the disparity widens. Third, a mechanism analysis reveals that policy uncertainty contributes to government corruption, further hindering electricity access and deepening regional inequalities. The analysis also highlights how economic policy uncertainty can exacerbate corruption, compounding access issues. Finally, green finance emerges as a mitigating factor, alleviating some of the adverse effects of policy uncertainty. These results provide a deeper understanding of the intricate dynamics at play and suggest that carefully crafted policies can help offset the negative consequences of economic policy uncertainty.
Economic policy uncertainty , Electricity accessibility , Urban-rural inequality
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School of International Trade and Economics, University of International Business and Economics, Beijing, 100029, China
School of Geography, Earth and Environmental Sciences, University of Birmingham, Birmingham, B15 2TT, United Kingdom
Department of International Relations and World Economy, Al-Farabi Kazakh National University, Almaty, 050040, Kazakhstan
Energy Center, Department of Economics, Business School, The University of Auckland, Auckland, New Zealand
School of Economics and Management, China University of Petroleum (East China), Qingdao, 266580, China
School of International Trade and Economics
School of Geography
Department of International Relations and World Economy
Energy Center
School of Economics and Management
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