Too big to be ignored: How energy poverty undermines productive efficiency
Gideon Ndubuisi,
Yuni Denis,
Christian Urom and
Ilyes Abid
Energy Policy, 2023, vol. 181, issue C
Abstract:
Productive efficiency has far-reaching implications on the direction of economic growth and welfare. While this has led to an expansive literature on the drivers of productive efficiency, this literature has proceeded without considering the role of energy poverty. Yet, energy poverty affects productive efficiency on several fronts. This paper fills this knowledge gap, u. sing a sample comprising 100 developing countries for the period 2000–2017. W e found robust evidence suggesting that energy poverty negatively affects productive efficiency—i.e., energy-poor countries become productively inefficient. Further analysis in the paper revealed that this negative effect persists largely across regions and is not sensitive to cross-country differences in income level. We also found that the negative effect of energy poverty on productive efficiency becomes more pronounced at a higher level of productive efficiency. We discuss the policy implications of our findings.
Keywords: Productive efficiency; Energy poverty; Developing countries (search for similar items in EconPapers)
JEL-codes: O10 Q40 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (4)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:181:y:2023:i:c:s030142152300318x
DOI: 10.1016/j.enpol.2023.113733
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