Does energy poverty hinder the reduction of carbon emissions? the case from China

School of Economics and Business Administration, Chongqing University, Chongqing, China.

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Abstract

China is committed to achieving a green and low-carbon transformation by reducing carbon emissions and utilizing energy efficiently. However, there is regional heterogeneity in energy distribution and availability. The limited energy consumption choices and low utilization efficiency in regions suffering from energy poverty hinder the green and low-carbon transformation of society. To investigate the impact of energy poverty on carbon emissions, we evaluated China’s city-level energy poverty and its impact on carbon emission levels based on panel data of Chinese cities. Our research found that energy poverty increases per capita carbon emissions, and there is regional heterogeneity in the relationship between energy poverty and carbon emission. In western China, energy poverty has a more significant impact on carbon emissions. Economic development, fiscal deficits, and household financial leverage can also lead to an increase in carbon emissions. Our research findings suggest that the government should keep stable spending and investment in energy infrastructure to stabilize domestic energy consumption prices. Governments of various countries should also promote the balanced development of regional energy markets to alleviate the carbon emission effects of energy poverty.