Can digital financial inclusion alleviate energy poverty? Evidence from China

Qingfeng Ding, Yulei Rao and Yifei Dai

Energy, 2025, vol. 333, issue C

Abstract: Energy is a crucial material foundation and driving force for the progress of human civilization, vital for national welfare and security. Utilizing the entropy method to construct a multidimensional energy poverty (EP) index, this study examines the interaction between digital financial inclusion (DFI) and EP through provincial-level data from China, spanning the years 2011–2021. The study finds that DFI significantly mitigates EP, a finding that remains valid following various endogeneity and robustness checks. Mechanism analysis indicates that DFI can enhance rural per capita income and promote financial aggregation, thereby indirectly alleviating regional EP. Based on these findings, this study suggests that policymakers should invest in financial services infrastructure to develop DFI to alleviate EP. These efforts are important for achieving sustainable development and improving people's lives in China, and can provide useful references for energy-poor countries globally.

Keywords: Digital financial inclusion; Energy poverty; Mechanism analysis; Entropy method (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:333:y:2025:i:c:s0360544225031755

DOI: 10.1016/j.energy.2025.137533

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