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Towards common prosperity: The role of mitigating energy inequality

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  • Liu, Yang
  • Du, Junying
  • Wang, Kun

Abstract

China's economy is growing at an impressive pace, but it also reveals some issues with uneven and inadequate development. This is particularly evident in the energy sector, where renewable energy is making rapid progress, but energy inequality remains a persistent concern that could impede efforts to achieve common prosperity. This paper analyzes the challenges posed by energy inequality to achieving common prosperity in China. This study analyzes the influence of energy inequality on common prosperity using the system-generalized method of moments (SYS-GMM) technique. The study results indicate that energy inequality has a significant negative impact on common prosperity. This Research also conducts a mechanism analysis, which demonstrates that energy inequality has an indirect impact on reducing common prosperity by decreasing labor productivity and increasing air pollution. In addition, the heterogeneity analysis also shows that in regions with high levels of energy inequality and high levels of common prosperity, as well as in western regions, the problem of energy inequality has a more significant obstructive effect on achieving common prosperity. Drawing from the findings, this study suggests several policy implications that the Chinese government can implement to address energy inequality and promote common prosperity.

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  • Liu, Yang & Du, Junying & Wang, Kun, 2024. "Towards common prosperity: The role of mitigating energy inequality," Energy Policy, Elsevier, vol. 195(C).
    • Handle: RePEc:eee:enepol:v:195:y:2024:i:c:s0301421524004063
    DOI: 10.1016/j.enpol.2024.114386
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    More about this item

    Keywords

    Energy inequality; Common prosperity; Labor productivity; Air pollution; China;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General

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