Towards sustainable energy access: Investigating the relationship between renewable energy consumption and energy poverty

Abstract

Given the global push for renewable energy to achieve sustainable development goals, understanding its implications for energy poverty is crucial. This study addresses a gap in the literature by examining how renewable energy affects two key energy poverty indicators: access to electricity and access to clean cooking fuel, particularly in rural and urban contexts. We employ bootstrap based bias corrected fixed effects model to examine the impact of renewable energy consumption on energy poverty across 80 economies from 1996 to 2020. The analysis demonstrates that renewable energy consumption is negatively associated with electricity access, particularly in urban areas. The emphasis on renewable energy adoption can hinder access to clean cooking fuels in rural areas. These findings highlight the need for targeted policy interventions that address the unique challenges of both urban and rural regions. To mitigate potential negative effects, policymakers should invest in energy storage, grid modernization, and decentralized systems, while ensuring that renewable energy initiatives align with broader sustainable development goals.