Assessing the Causal Relationships of Energy Poverty, Foreign Direct Investment, and Public Health at the Global Level

Shan Lu, Zhenhua Zhang and Yuxi Pan

Emerging Markets Finance and Trade, 2025, vol. 61, issue 11, 3359-3381

Abstract: In the context of globalization and sustainable development, the nexus between energy poverty, foreign direct investment, and public health is complex and interwoven. Exploring their interaction and causality is of key strategic significance for advancing energy transition and structural upgrading, as well as promoting the high-quality development of the social economy. This paper presents a comprehensive empirical analysis by employing advanced econometric methodologies, including cointegration test analysis, pooled means group method (PMG), panel Granger causality test, and panel impulse response function. Of special note, the long-run nexuses among these variables are confirmed. The Granger causality tests support bidirectional causality between public health and energy poverty and unidirectional causality running from foreign direct investment to public health. The results of PMG estimations also suggest that energy poverty negatively affects public health, while a positive link from foreign direct investment to public health exists in the long term. Furthermore, it is important to note that the interactions exhibit heterogeneity across subsamples. The findings shed light on important policy implications in terms of improving public health and promoting energy transition under the consideration of resource allocation optimization.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:61:y:2025:i:11:p:3359-3381

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DOI: 10.1080/1540496X.2025.2480162

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