How does low-carbon energy transition alleviate energy poverty in China? A nonparametric panel causality analysis

Low-carbon energy transition is conducive to saving energy and reducing emissions, and its impact on energy poverty warrants intensive attention. By employing a balanced panel dataset of China's 30 provinces for the period 2004-2017, we examine the causal relationship between low-carbon energy transition and energy poverty by using a novel nonparametric panel causality-in-quantiles (PCIQ) method. Also, the internal impact mechanism between low-carbon energy transition and energy poverty is analyzed. The primary findings of our study imply that low-carbon energy transition shows significant bidirectional causality with energy poverty alleviation. And the low-carbon energy transition can stimulate energy poverty alleviation by affecting poverty in the availability of energy services, the cleanness of energy consumption, the integrity of energy management, and energy affordability and efficiency. Our findings provide an important reference for the government to formulate relevant policies that promote the alleviation of energy poverty.

Automated summary

The study found a significant bidirectional causal relationship between low-carbon energy transition and alleviation of energy poverty. Low-carbon energy transition can stimulate energy poverty alleviation through various factors, such as improving the availability of energy services, clean energy consumption, integrity of energy management, and energy affordability and efficiency.