Marketization And Energy Poverty

Along with economic growth, improving the quality of life of its citizens is a focal issue for the Chinese government. Energy poverty--a topic closely related to people's quality of life--has received global attention. This article focuses on the relationship between marketization and energy poverty, estimating the intrinsic relationship between marketization and energy poverty by constructing panel data using the instrumental variable method. The study reveals a significant upward trend in marketization in China in recent years, with a concomitant decrease in energy poverty. The results confirm that marketization improves the quantity of energy supply and alleviates energy poverty, and that the quality of energy supply is also an effective way for marketization to impact energy poverty. However, this mechanism is mainly reflected in the fact that marketization increases the accumulation of human capital and promotes the use of clean energy, but not in the improvement of energy supply efficiency by marketization. Additionally, marketization-led increase in people's income alleviates energy poverty. This study adds to the existing literature and provides important policy insights for market-based development and energy poverty reduction.