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How industrial structure distortion affects energy poverty? Evidence from China

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  • Lyu, Yanwei
  • Wu, You
  • Zhang, Jinning

Abstract

Promoting energy system reform is an essential initiative to eradicate energy poverty (EP). However, industrial structure distortion (ISD) may hinder this process, thus potentially aggravating EP. This study aims to measure the impact of ISD on EP by using multiple panel econometric models. The results indicate that ISD significantly exacerbates EP in China. This impact is achieved by stimulating energy price increase, hindering the marketization process, and suppressing the rise in resident income. The estimation results of the Spatial Durbin Model show that EP in one region is influenced by its own ISD and the ISD of other regions. Heterogeneity analysis reveals that the primary sector distortion has the greatest impact on EP, and the western region is more prone to EP. In addition, since the launch of the green credit guidelines in China, green finance has substantially contributed to EP eradication. This study helps China recognize the current obstacles in eradicating EP, and provide policy insights to global industrial restructuring.

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  • Lyu, Yanwei & Wu, You & Zhang, Jinning, 2023. "How industrial structure distortion affects energy poverty? Evidence from China," Energy, Elsevier, vol. 278(C).
    • Handle: RePEc:eee:energy:v:278:y:2023:i:c:s0360544223011489
    DOI: 10.1016/j.energy.2023.127754
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