Targeted poverty alleviation and energy poverty in China’s rural households

Energy poverty is a significant global issue that has attracted extensive scholarly attention. In 2020, China successfully eradicated absolute income poverty, making a substantial contribution to global poverty reduction efforts. The correlation between energy poverty and income poverty is highly significant. Has China’s targeted poverty alleviation contributed to the elimination of energy poverty? Based on data from China Family Panel Studies covering the years 2012 to 2020, this study employs a difference-in-differences methodology, revealing that the implementation of targeted poverty alleviation has resulted in a statistically significant decrease in household energy poverty. Specifically, the energy burden ratio (EP1) falls by 15.4 percentage points; the probability of being energy poor under the 10% threshold (EP2) falls by 23.4 percentage points; the low-income high-cost measure (EP3) falls by 25.3 percentage points; the multidimensional energy poverty index (EP4) falls by 0.244; and the composite index (EP5) falls by 0.053 in absolute terms. Heterogeneity analysis indicates that the energy poverty reduction effect of targeted poverty alleviation is more prominent in the central region of China and in households with school-age children. However, the energy poverty reduction effect is relatively weaker in households with elderly members or individuals hospitalized due to illness. Mechanism analysis indicates that targeted poverty alleviation can promote employment, increase disposable income, and enhance the affordability of household energy. In addition, targeted poverty alleviation measures also alleviate energy poverty by improving household energy consumption structure, raising environmental awareness, and promoting more adoption of energy-saving appliances in households. The findings of this study provide valuable insights for other developing countries facing similar challenges in addressing energy poverty and promoting sustainable development.