The role of power transmission infrastructure in income inequality: Fresh evidence from China

Ruting Huang and Xin Yao

Energy Policy, 2023, vol. 177, issue C

Abstract: Power infrastructure plays a critical role in poverty and economic growth, but its distributional effects remain actively debated, especially in developing countries. This paper empirically examines the effects of power transmission infrastructure on income inequality in China. We find that power transmission infrastructure has a significant income distribution effect. This paper also analyzes its impact mechanism and suggests that the distributional effects mainly work through improving agricultural productivity and rural residents' income. With further research, the empirical results show that the fruit of power transmission infrastructure development is unevenly distributed within different groups, and the income inequality within urban and rural sectors has become even worse. The distributional effects also differ across regions, and the power-importing areas benefit more than exporting regions. These findings suggest insightful references for developing countries’ power infrastructure planning and construction strategy.

Keywords: Income inequality; Power transmission infrastructure; Influence mechanism; China (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:177:y:2023:i:c:s0301421523001490

DOI: 10.1016/j.enpol.2023.113564

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