How does artificial intelligence impact household energy poverty? Empirical evidence from China

Yanyan Wang and Fuling Chu

Energy, 2025, vol. 341, issue C

Abstract: Addressing household energy poverty (EP) is a critical step toward fostering social fairness, raising living standards, and achieving sustainable development objectives. This study explores the impact and mechanism of artificial intelligence (AI) on household EP using data from the China Family Panel Studies (CFPS) and the International Federation of Robotics (IFR) from 2012 to 2018. The findings indicate that, overall, for every one-unit increase in the development level of AI, household EP decreases by 7.7 %. Furthermore, AI can reduce household EP by increasing household wage income and facilitating employment advancement. Subsequent analysis of the nonlinear effect reveals an "inverted N-shaped" relationship between AI and household EP. As AI advances, household EP initially gradually declines, subsequently experiences a tiny increase, and then rapidly declines. The heterogeneity analysis reveals that wheneducational attainment exceeds 6 years and the income exceeds the medium level, the alleviating impact of AI on EP becomes apparent, with its influence progressively intensifying as human capital and income levels rise. Regionally, the impact of AI is particularly evident in China's urban, energy-abundant regions and places with stringent environmental regulations. It is suggested to persistently promote the development of AI, establish an intelligent talent cultivation system, strategize the advancement of renewable energy, and establish a regulatory framework for the implementation of AI in the energy sector.

Keywords: Artificial intelligence; Household energy poverty; Wage income; Employment advancement (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:341:y:2025:i:c:s0360544225049552

DOI: 10.1016/j.energy.2025.139313

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