Energy poverty and developments in finance, economic complexity and economic conditions
International Journal of Energy Sector Management
ISSN: 1750-6220
Article publication date: 9 July 2024
Issue publication date: 2 January 2025
Abstract
Purpose
Energy poverty presents substantial challenges for both developed and developing nations, with the latter experiencing more pronounced adverse effects due to issues related to the provision and equitable access of energy resources. This study aims to provide a deep understanding of how financial development, economic complexity and government expenditures can impact energy poverty.
Design/methodology/approach
This research employs generalized method of moments (GMM) estimation on panel data to investigate the economic determinants of energy poverty in 31 developing countries from 2000 to 2020. For a comprehensive analysis, the proxies for energy poverty include access to electricity, access to clean fuels and energy consumption.
Findings
The findings suggest that while financial development cannot facilitate access to clean fuels in developing countries, it contributes to an increase in energy access and consumption. Another finding is that energy poverty can be alleviated by enhancing economic complexity since economic complexity can result in increased access to electricity and increased use of clean energy sources. Furthermore, the results underscore the pivotal role of government expenditures, surpassing the influence of financial development. In other words, government expenditures have the potential to significantly improve energy poverty across all three indices.
Originality/value
This is a pioneering research that seeks to examine some economic dynamics including, financial development and economic complexity on energy poverty and provide valuable guidance for policymakers aiming to promote sustainable energy development with respect to economic dynamics.
Keywords
Acknowledgements
This article is taken from a research project entitled “Factors affecting energy poverty with an emphasis on the role of financial policy and financial development” approved by the Research Council of Bozorgmehr University of Qaenat, notification number 39241.The authors would like to thank Bozorgmehr University of Qaenat for the financial support of this research.
Declaration of interests: The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
Authors' contributions: MA analyzed data and developed the model regarding the relationship between variables. GS prepared the introduction, historical literature and economic analysis parts of the manuscript. Both authors read and approved the final manuscript.
Citation
Ashena, M. and Shahpari, G. (2025), "Energy poverty and developments in finance, economic complexity and economic conditions", International Journal of Energy Sector Management, Vol. 19 No. 1, pp. 201-219. https://doi.org/10.1108/IJESM-03-2024-0031
Publisher
:Emerald Publishing Limited
Copyright © 2024, Emerald Publishing Limited