Can financial inclusion reduce energy inequality? Evidence from China

Bijun Dong, Qingzhe Jiang, Yue Dou and Xiucheng Dong

Applied Economics, 2024, vol. 56, issue 50, 6109-6125

Abstract: Energy inequality has been a hot topic in academia. This study first measures energy inequality in 25 Chinese provinces, and then investigates the interaction between financial inclusion and energy inequality. We also explore the potential impact mechanism behind the relationship. The primary findings reveal that: (i) Financial inclusion can help reduce energy inequality in China; moreover, the impact of financial inclusion varies according to regional consumption levels and environmental regulation. (ii) Technological innovation plays an important role in enhancing the ability of financial inclusion to reduce energy inequality. (iii) Fiscal revenue and energy consumption structure are two significant mediating factors through which energy inclusion affects energy inequality. (iv) Digital financial inclusion (DFI) has an inverted U-shaped impact on energy inequality. Overall, this research provides important insights into the impact of financial inclusion and offers several practical implications for reducing energy inequality in China.

Date: 2024
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DOI: 10.1080/00036846.2023.2267820

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