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Can financial literacy Ease energy poverty? Some Lessons at the household level in China

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  • Tao, Miaomiao
  • Lin, Boqiang
  • Poletti, Stephen
  • Pan, Addison

Abstract

Energy poverty and financial literacy are two cross-cutting vital dimensions in sustainable global development. This study examines whether and how financial literacy reduces energy poverty at the household level in China. A two-way fixed regression model demonstrates the catalytic role of financial literacy in eradicating energy poverty. Furthermore, this study identifies potential mechanisms between financial literacy and energy poverty from a mediation and moderation perspective. Financial literacy indirectly and robustly mitigates energy poverty by heightening households' future expectations. However, higher financial risk weakens this facilitating effect on households’ future expectations, as increased financial risk destabilizes household finances.

Suggested Citation

  • Tao, Miaomiao & Lin, Boqiang & Poletti, Stephen & Pan, Addison, 2024. "Can financial literacy Ease energy poverty? Some Lessons at the household level in China," Utilities Policy, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:juipol:v:91:y:2024:i:c:s0957178724001280
    DOI: 10.1016/j.jup.2024.101835
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