How Does Income Inequality Affect Rural Households’ Transition to Clean Energy? A Study Based on the Internal Perspective of the Village

Yixuan Zhang () and Jin Wang ()
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Yixuan Zhang: School of Economics and Management, Yan ’an University, Yan’an 716000, China
Jin Wang: Academic Affairs Office, Yan ’an University, Yan’an 716000, China

Sustainability, 2025, vol. 17, issue 14, 1-21

Abstract: Promoting clean energy transition in rural areas is a key path to achieving global sustainable development, protecting public health, and promoting ecological livability. Based on data from the China Family Panel Studies (CFPS), this paper employs a multi-dimensional fixed effects model to evaluate the impact of income inequality on rural households’ clean energy transition (CET) and examines its underlying mechanisms. Research findings indicate that income inequality significantly suppresses rural households’ CET, primarily by reducing basic energy consumption and hindering the upgrading of basic energy consumption structures. Government governance quality exerts a significant negative moderating effect on the relationship between income inequality and rural households’ CET. Further analysis shows that the inhibitory effect of income inequality on CET is more significant in the regions with a low economic development level and low coal resource endowment, and in the western and northeastern regions of China. Therefore, while continuously promoting rural income growth, the government should prioritize equitable distribution, strengthen institutional capacity-building, improve the social service and security system, and facilitate rural households’ CET.

Keywords: income inequality; clean energy transition; quality of government governance; basic energy consumption (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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