New Energy Demonstration Cities and the Mitigation of Energy Poverty in China

You Wu ()
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You Wu: School of Economics, University of Sheffield, Sheffield S10 2TU, UK

No 2026001, Working Papers from The University of Sheffield, Department of Economics

Abstract: China’s New Energy Demonstration Cities (NEDCs) sought to develop affordable, clean energy. This study therefore examines the NEDCs’ effectiveness in mitigating energy poverty (EP). We focus on electricity consumption, economic development, and renewable uptake – three components of International Energy Agency’s (IEA) measure of EP. Using panel data from 281 Chinese cities (2011-2021) and propensity score matching with difference-in-differences, the analysis found no statistically or economically significant overall effect of NEDCs on reducing EP. This is also consistent across the three IEA sub-components. The findings suggest this ineffectiveness may stem from weak enforcement, low public participation, and inequalities in income and education.

Keywords: Difference-in-differences; China; New Energy; Development Policy; Energy Poverty (search for similar items in EconPapers)
JEL-codes: C23 P28 Q48 R11 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2026-03
New Economics Papers: this item is included in nep-cna, nep-ene, nep-env and nep-sea
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