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The wall between urban and rural: How does the urban-rural electricity gap inhibit the human development index

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  • Zhao, Congyu
  • Wu, Qingyang

Abstract

Based on the Instrumental Variables - Generalized Method of Moments (IV-GMM) model, this paper explores the relationship, heterogeneity, and mechanisms between the urban-rural electricity gap and the human development index for 176 countries during 2000–2020. The key findings are as follows: (1) Urban-rural electricity gap is harmful to the improvement of the human development index; an enlarged gap in electricity accessibility between urban and rural is detrimental to sustainable human development. (2) Urban-rural electricity gap is more harmful to the increase of human development index in low-income countries and low governance efficiency countries. Also, the heterogeneity exists in different quantiles, and their nexus is closer in countries with lower levels of human development index. (3) Income inequality and energy poverty act as mechanisms, which means that the urban-rural electricity gap inhibits the human development index by exacerbating income inequality and energy poverty.

Suggested Citation

  • Zhao, Congyu & Wu, Qingyang, 2024. "The wall between urban and rural: How does the urban-rural electricity gap inhibit the human development index," Structural Change and Economic Dynamics, Elsevier, vol. 71(C), pages 289-301.
    • Handle: RePEc:eee:streco:v:71:y:2024:i:c:p:289-301
    DOI: 10.1016/j.strueco.2024.08.002
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    More about this item

    Keywords

    Urban-rural electricity gap; Human development index; Income inequality; Energy poverty; Global;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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