Exploring the Role of Central Bank Digital Currency in Achieving Sustainable Development Goal 7: Evidence From Developing Countries

ABSTRACT Using a panel dataset of 84 developing countries from 2000 to 2022, this study employs OLS and Driscoll–Kraay standard errors methods to examine the relationship between the development of central bank digital currency (CBDC) and energy poverty alleviation. The results indicate that CBDC development significantly reduces energy poverty in both rural and urban areas. Heterogeneity analysis shows that the effect of CBDC development on energy poverty reduction is varied across regions. Specifically, the impact of CBDC is more significant in Asian and African countries. Robustness checks using alternative measurements of energy poverty and adopting mean group estimation, and Kinky least squares methods consistently confirm the reliability of our finding. Therefore, policymakers should accelerate CBDC adoption through targeted infrastructure investments and use CBDC as a strategic tool for achieving Sustainable Development Goal 7.