The Impact of Energy Transition on Energy Poverty in BRICS Nations: Evidence from Panel Approaches

The BRICS nations face significant challenges related to energy poverty, with millions lacking access to modern energy services. The energy transition, a shift to renewable energy sources, is a key strategy to address energy poverty and mitigate climate change. However, the impact of energy transition on energy poverty in BRICS nations is not well understood, and the existing literature suggests mixed effects. This study investigates the impact of energy transition on energy poverty in BRICS nations, exploring the relationships between energy transition, urbanization, economic growth, unemployment, and energy poverty. The study uses panel data from 2000 to 2023 for BRICS nations, employing panel least squares, panel dynamic ordinary least squares, panel fully modified least squares, and bootstrap quantile regression models to analyze the relationships between energy transition, urbanization, economic growth, unemployment, and energy access. The findings indicate that energy transition has a significant negative relationship with energy access, increasing energy poverty in BRICS nations. Urbanization and economic growth also increase energy poverty, while unemployment has a mixed impact. The results suggest that energy transition policies may be exacerbating energy poverty, highlighting the need for equitable energy policies. The study recommends that policymakers prioritize energy access and affordability, invest in energy infrastructure, and align economic growth policies with energy policies to reduce energy poverty. Energy transition policies should be designed to benefit the poor and marginalized, rather than exacerbating energy poverty. Additionally, policymakers should address governance and institutional frameworks to support energy transition and energy poverty reduction.