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Natural resources as a source of financing energy poverty reduction? Resources extraction perspective

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  • Bai, Rongjun
  • Liu, Yan

Abstract

The basic goal of COP26 the UN framework convention on climate change is to guarantee accessibility to clean energy, a severe issue in developing as well as in advanced nations. Though relatively less research has been done on the causes of energy poverty. This research fills the gap in the literature by looking at the lack of accessibility, availability as well as affordability of energy which are the major factors behind energy poverty in 6 major emerging economies. This is one of the first studies to examine how natural resources, political risk, consumption of renewable energy, GDP, and globalization affect energy poverty. The authors make use of panel data and also one of the most appropriate panel data econometric tools for long relationship Quantiles regression via the Method of Moments (MMQR) to observe adjustment over time in between variables which is helpful in the empirical proof. The annual panel data used in this study are from six emerging economies from 1990 to 2019. The outcomes of the economic analysis indicated that natural resources reduce the energy poverty gap in terms of energy accessibility, availability, and affordability. Simultaneously, the gap in energy poverty is widened by high political risk. Furthermore, an upsurge in GDP and consumption of renewable energy increases the accessibility, availability, and affordability of energy poverty in the targeted economies. These empirical findings are consistent across model setups, allowing us to offer new suggestions on energy accessibility, availability, and affordability following the COP26 conference.

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  • Bai, Rongjun & Liu, Yan, 2023. "Natural resources as a source of financing energy poverty reduction? Resources extraction perspective," Resources Policy, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:jrpoli:v:82:y:2023:i:c:s0301420723002040
    DOI: 10.1016/j.resourpol.2023.103496
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