The window of opportunity: Estimating the role of climate finance on urban-rural electricity inequality
Zhao C. Zhai X. Yuan M. Liu Z.
February 2025Academic Press
Journal of Environmental Management
2025#374
Access to electricity is vital for enhancing human welfare; however, it is not equally distributed between rural and urban demographics. This paper, for the first time, examine the impact of climate finance on electricity accessibility, and the inequality of electricity accessibility between urban and rural areas. Based on the dataset covering 125 countries during 2002–2020, and by using the instrumental Variables-Generalized Method of Moments model, we mainly arrive at the following conclusions. (1) Climate finance emerges as a beneficial factor for enhancing electricity accessibility, and it also demonstrates a pronounced impact on reducing urban-rural electricity inequality. (2) Climate finance is more effective in low-income countries; however, its impact diminishes progressively as countries move towards higher income levels. (3) The human development index enhances the promoting effect of climate finance on electricity accessibility. It simultaneously strengthens climate finances inhibiting effect on electricity inequality. While the presence of refugee populations reverses the initial positive effects of climate finance on electricity accessibility, and exacerbates the inhibiting effect of climate finance on electricity inequality.
Climate finance , Electricity accessibility , Energy inequality , Global , Income level , Urban-rural electricity 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
Department of Sustainability and Planning, Aalborg University, Rendsburggade 14, Aalborg, 9000, Denmark
Department of Chemical Engineering, School of Engineering, The University of Manchester, Manchester, M13 9PL, United Kingdom
School of International Trade and Economics
School of Geography
Department of International Relations and World Economy
Department of Sustainability and Planning
Department of Chemical Engineering
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