How green finance can bridge the energy poverty gap: Policies to mitigate socioeconomic and environmental consequences

Hua Cheng and Farhad Taghizadeh-Hesary

Energy Policy, 2023, vol. 182, issue C

Abstract: Promoting renewable energy consumption is widely accepted as an effective policy to reduce energy poverty. This study investigates the relationship between green finance and energy poverty using the Fully Modified Ordinary Least Square (FMOLS) model, utilizing data from 20 developing Asian countries from 2010 to 2021. The results confirm that a 1% increase in the sustainable financing market reduces the energy poverty gap in these Asian countries by nearly 0.02%. As a proxy of technological progress, the innovation index exacerbates energy poverty. Moreover, a 1% increase in sustainable electricity production reduces the energy poverty gap in these countries by approximately 0.35%. An increase in the consumer price index harshly impacts energy justice. Critical policy implications for developing Asian economies are sustainable power generation, establishing digital green finance, utilizing green cryptocurrencies, and improving green literacy.

Keywords: Energy poverty; Green finance; Sustainable development; Green energy utilization (search for similar items in EconPapers)
JEL-codes: E44 F61 I32 Q40 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421523003439
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:182:y:2023:i:c:s0301421523003439

DOI: 10.1016/j.enpol.2023.113758

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().