The role of climate policies in alleviating global energy poverty. Evidence from system GMM analysis

Jean de Dieu Ndayambaje, Ling Yang, Adegboyo Olufemi Samuel and Elias Gakuru

Energy, 2025, vol. 330, issue C

Abstract: In the context of climate change mitigation policies aimed at reducing greenhouse gas emissions by promoting renewable energy and decreasing fossil fuel consumption, addressing energy poverty is a critical concern. This paper investigates the impact of climate change mitigation policies on global energy poverty reduction through renewable energy consumption from 2000 to 2020. Using system GMM, the study examines whether these policies help alleviate energy poverty, considering the heterogeneous effects across income groups and the mediating role of renewable and fossil fuel energy consumption. The findings indicate a significant reduction in global energy poverty over the sample period and confirm the heterogeneous effects across income groups. The mediating role of renewable and fossil fuel energy consumption is also significant. Ultimately, climate change mitigation policies not only reduce global energy poverty but also facilitate a transition from fossil fuels to renewable energy. The study recommends that governments actively promote renewable energy adoption while reducing reliance on fossil fuels, implement equitable climate change mitigation policies to ensure social inclusion and fairness, and provide tailored support, such as financial assistance and incentives for lower-income households, to address socio-economic inequalities and mitigate energy poverty.

Keywords: Energy poverty; Climate change policies; Renewable energy consumption; Fossil fuel energy consumption; System GMM (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:330:y:2025:i:c:s0360544225026325

DOI: 10.1016/j.energy.2025.136990

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