Energy EconomicsPub Date : 2026-02-01Epub Date: 2026-01-10DOI: 10.1016/j.eneco.2026.109135
Yang Zhou , Peixuan Li , Mengmin Sun , Wenjia Tan
{"title":"Can photovoltaic poverty alleviation reduce multidimensional energy poverty? Evidence from 1928 counties in China","authors":"Yang Zhou , Peixuan Li , Mengmin Sun , Wenjia Tan","doi":"10.1016/j.eneco.2026.109135","DOIUrl":"10.1016/j.eneco.2026.109135","url":null,"abstract":"<div><div>Energy poverty, a complex multidimensional challenge, is a key obstacle to achieving sustainable development. This study provides the first nationwide causal assessment of China's Photovoltaic Poverty Alleviation (PVPA) policy on multidimensional energy poverty (MEP) using a balanced panel of 1928 counties from 2013 to 2020, covering approximately 90% of the nation's poor population. We assess the dynamic impacts of PVPA on MEP, measured through the multidimensional energy poverty index (MEPI), which captures dimensions such as cooking, lighting, and communication—by applying staggered difference-in-differences (DID), Callaway and Sant'Anna's heterogeneity-robust DID (CSDID), Honest-DID, and spatial DID methods. Results show that PVPA significantly alleviates MEP through two reinforcing pathways: first by increasing household income via PV electricity revenue and rural employment, and second by enabling clean energy substitution, reducing reliance on biomass and coal. Between 2013 and 2020, China's national MEPI declined by 23%, with stronger PVPA effects observed in low-coal, low-vegetation, and relocation-targeted areas, while regions with entrenched traditional energy use showed weak effects. Mechanism analysis confirms that both income enhancement and service improvement contribute to these gains. This study provides robust causal evidence linking renewable energy–driven poverty alleviation to MEP reduction, offering policy insights on embedding energy access targets in rural revitalization, tailoring interventions to regional contexts, and sustaining improvements through distributed energy storage and infrastructure upgrades.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"154 ","pages":"Article 109135"},"PeriodicalIF":14.2,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146034532","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Why regulations fail? Environmental regulations, bargaining power, and strategic-political CSR in China","authors":"Qisheng Jiang , Pengcheng Tang , Chao Wang , Xinyuan Peng","doi":"10.1016/j.eneco.2026.109154","DOIUrl":"10.1016/j.eneco.2026.109154","url":null,"abstract":"<div><div>Strict regulations are usually regarded as valid tools for government to pursue sustainable development, while clear evidence is required to answer how the polluting firms actually respond to them, especially in the emerging markets with imperfect institution. With the data of 2848 Chinese A-share listed firms, this paper takes the enforcement of China's New Environmental Protection Law (NEPL) as an exogenous shock, and utilizes the difference-in-difference and tripe difference models to investigate how polluting firms strategically respond to strict environmental regulations. The results show that facing the pressure of NEPL, the polluting firms tend to pursue the community-related corporate social responsibility (CSR) as a strategic-political CSR, rather than fulfill environmental responsibility obediently. Significantly, the strategy obviously varies for firms with different bargaining power with local governments and mainly works for the state-owned firms, large taxpayer or large employer, while the non-state-owned or small firms would still pursue environmental compliance as required. Though does crowd out the environmental performance, more strategic-political CSR engagement, instead, shelter firms from environmental penalty while benefiting other stakeholders. This paper helps understand the motivations and outcomes of regulated firms' strategic response to strict environmental regulations, which is particularly relevant to not only China, but also other emerging markets with similar government intervention and passive CSR fulfillment.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"154 ","pages":"Article 109154"},"PeriodicalIF":14.2,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146034436","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy EconomicsPub Date : 2026-02-01Epub Date: 2026-01-20DOI: 10.1016/j.eneco.2026.109160
Kejia Yan , Boqiang Lin
{"title":"Carbon–agriculture market connectedness under the EU ETS: Evidence on sectoral heterogeneity and market states","authors":"Kejia Yan , Boqiang Lin","doi":"10.1016/j.eneco.2026.109160","DOIUrl":"10.1016/j.eneco.2026.109160","url":null,"abstract":"<div><div>This study examines the dynamic connectedness structure between European Union Allowance (EUA) futures and agricultural commodity futures, with the aim of assessing how climate policy–related unintended economic impacts may be reflected across different agricultural sectors and market states. Rather than focusing on causal transmission, the analysis adopts a connectedness-based monitoring perspective, using futures markets as forward-looking indicators of evolving cost pressures and market sensitivities associated with climate policy implementation. Using daily data spanning all four trading phases of the EU Emissions Trading System (EU ETS) from 2007 to 2024, we document pronounced sectoral heterogeneity and state dependence in carbon–agriculture market linkages. Grain futures consistently exhibit directional dominance in their bilateral connectedness with EUA futures across market conditions, indicating strong structural resilience in staple food markets. In contrast, non-grain agricultural futures display greater heterogeneity, with their directional exposure to carbon market dynamics becoming more pronounced in later trading phases and under specific quantile conditions. These findings suggest that climate policy–related unintended economic impacts are unlikely to manifest uniformly across food systems, but may emerge more selectively along specific segments of the agricultural value chain and under particular market states. By highlighting where and when such sensitivities become more visible within market interactions, this study contributes to a more nuanced understanding of the broader economic implications of climate policy implementation, while offering a policy-relevant diagnostic framework that complements traditional price- or outcome-based evaluations.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"154 ","pages":"Article 109160"},"PeriodicalIF":14.2,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146014261","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy EconomicsPub Date : 2026-02-01Epub Date: 2026-01-14DOI: 10.1016/j.eneco.2026.109147
Jin Sun , Kamiar Mohaddes , Meng Cai
{"title":"Trade, finance, and the environment: The effects of green trade financing on carbon emissions","authors":"Jin Sun , Kamiar Mohaddes , Meng Cai","doi":"10.1016/j.eneco.2026.109147","DOIUrl":"10.1016/j.eneco.2026.109147","url":null,"abstract":"<div><div>The rapid expansion of green trade financing is reshaping global trade dynamics and offering new opportunities for carbon emission reduction. Our study examines the impact of Green Trade Financing on carbon emissions across a global sample of countries from 2012 to 2022, providing new insights into the environmental advantages of green or sustainable trade policies. The empirical results demonstrate that green trade financing significantly reduces carbon emissions, mainly through two channels: promoting green innovation and improving energy structure. Mechanism analysis confirms that it enhances firms' environmentally oriented innovation and facilitates the transition toward cleaner energy. These findings underscore the environmental benefits of green finance and highlight its role as a scalable instrument for sustainable development. The study also provides multi-level policy recommendations to operationalize green trade financing under diverse institutional conditions.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"154 ","pages":"Article 109147"},"PeriodicalIF":14.2,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145995265","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy EconomicsPub Date : 2026-02-01Epub Date: 2025-12-23DOI: 10.1016/j.eneco.2025.109097
Prachi Srivastava , Nicholas Bloom , Philip Bunn , Paul Mizen , Gregory Thwaites , Ivan Yotzov
{"title":"Firm climate investment: A glass half-full","authors":"Prachi Srivastava , Nicholas Bloom , Philip Bunn , Paul Mizen , Gregory Thwaites , Ivan Yotzov","doi":"10.1016/j.eneco.2025.109097","DOIUrl":"10.1016/j.eneco.2025.109097","url":null,"abstract":"<div><div>The green transition will require large investments from firms, yet little is known about the scale and drivers of climate-related capital expenditure across the UK economy. To address this gap, we draw on a large, representative survey of UK firms to quantify how businesses expect to adjust their medium-term investment in response to climate change. Over 2023-2026, firms expect climate-related investments to account for 5.5% of total capital expenditure. These investments will be driven by larger firms as well as those in more energy-intensive sectors. The main channels for these investments are switching to green energy sources and improving energy efficiency, and firms plan to finance them primarily using internal cash reserves. Overall, although firms are expecting to invest more resources in adapting to climate change, under reasonable assumptions, these investments are still not sufficient to meet the estimated targets implied by the UK Net Zero Pathway.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"154 ","pages":"Article 109097"},"PeriodicalIF":14.2,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145822780","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy EconomicsPub Date : 2026-02-01Epub Date: 2025-12-26DOI: 10.1016/j.eneco.2025.109100
Wanhai You , Chenyao Fang , Yawei Guo , Shijing Nan
{"title":"Can policy achieve environmental improvement? Evidence from the whole county photovoltaic project in China","authors":"Wanhai You , Chenyao Fang , Yawei Guo , Shijing Nan","doi":"10.1016/j.eneco.2025.109100","DOIUrl":"10.1016/j.eneco.2025.109100","url":null,"abstract":"<div><div>To facilitate the transition to clean energy and promote sustainable development, China's National Energy Administration issued the “Notice on the Publication of the County Wide Rooftop Distributed Solar Photovoltaic Development Pilot Project List” (also known as China's Whole County Photovoltaic Project). Using county-level panel data spanning May 2014 to September 2022, this study treats the initiative as an exogenous policy shock and employs a Difference-in-Differences (DID) design to assess its impact on environmental pollution. Empirical results indicate that the pilot policy significantly mitigates environmental pollution; this finding is further confirmed by a battery of robustness tests. Additionally, the mechanism analysis indicates that the project mitigates environmental pollution by facilitating public investment and driving green technological innovation. Furthermore, the heterogeneity analysis reveals that the pollution reduction effect is more pronounced in non-provincial capital, non-resource-based and western counties. Finally, we assess the heterogeneous effects using unconditional quantile regression (UQR). The results demonstrate that the significant impact is driven entirely by counties at the highest quantiles of pollution. Our findings offer valuable insights for policymakers in other countries aiming to advance energy transitions and mitigate environmental pollution.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"154 ","pages":"Article 109100"},"PeriodicalIF":14.2,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145882819","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy EconomicsPub Date : 2026-02-01Epub Date: 2025-12-30DOI: 10.1016/j.eneco.2025.109121
Guilherme Perobelli Salgueiro , Fernando Salgueiro Perobelli , Edson Paulo Domingues , Victor Eduardo de Melo Valério
{"title":"Spatial and socioeconomic factors of distributed photovoltaic generation in Minas Gerais","authors":"Guilherme Perobelli Salgueiro , Fernando Salgueiro Perobelli , Edson Paulo Domingues , Victor Eduardo de Melo Valério","doi":"10.1016/j.eneco.2025.109121","DOIUrl":"10.1016/j.eneco.2025.109121","url":null,"abstract":"<div><div>This article analyzes the determinants and spatial diffusion of residential distributed photovoltaic (PV) adoption in Minas Gerais, Brazil. Comprising 853 municipalities with deep socioeconomic disparities, the state serves as a unique case study for technology diffusion. The hypothesis of spatial randomness for the density of PV installations (N/Km<sup>2</sup>) was tested and rejected using Moran's I, revealing distinct clusters of high and low adoption. Employing a Spatial Durbin Model (SDM) to capture both direct and spillover effects, the results demonstrate that socioeconomic factors, specifically average wage, tertiary education, and urbanization are the primary drivers of diffusion. Crucially, the study identifies an ‘efficiency gap’ in the northern region of the state: while possessing the highest solar irradiation resources, these municipalities exhibit low adoption rates due to structural socioeconomic barriers, indicating that physical potential is a necessary but insufficient condition for diffusion. These findings suggest that public policies must go beyond technical incentives to address financial and educational constraints to promote equitable energy transition.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"154 ","pages":"Article 109121"},"PeriodicalIF":14.2,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145895701","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"From demand deficit to development strategy: Navigating mini-grid viability in a fragile context1","authors":"Elie Lunanga , Nik Stoop , Marijke Verpoorten , Sébastien Desbureaux","doi":"10.1016/j.eneco.2026.109141","DOIUrl":"10.1016/j.eneco.2026.109141","url":null,"abstract":"<div><div>Four in five people without access to electricity live in Sub-Saharan Africa, where mini-grids are seen as a key solution. Yet investment remains constrained by low and unpredictable demand, especially in fragile settings. We study electricity demand in North Kivu (Democratic Republic of Congo), using pre-grid census and survey data combined with six years of post-connection consumption records. Five key findings emerge: (i) demand is highly heterogeneous across and within localities, with pockets of low uptake; (ii) pre-grid covariates explain some variation but have limited predictive power for realized connection and consumption; (iii) SMEs consume far more per connection than households while making up a small share of connections; (iv) consumption rises after connection and then plateaus, indicating slow movement up the energy ladder; (v) conflict shocks temporarily depress consumption, but usage rebounds, highlighting resilience in the face of insecurity. We further examine how an integrated, demand-building strategy by the local operator can partially mitigate these challenges. The case highlights that mini-grid viability in fragile settings may depend less on improved demand forecasting and more on the capacity to build and coordinate demand alongside infrastructure, with implications for policy design, risk-sharing finance, and the role of public and donor support.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"154 ","pages":"Article 109141"},"PeriodicalIF":14.2,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145995220","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy EconomicsPub Date : 2026-02-01Epub Date: 2026-01-13DOI: 10.1016/j.eneco.2025.109098
Dana Kassem , Giulia Zane , Eustace Uzor
{"title":"Revisiting the Last Mile: The development effects of a mass electrification program in Kenya","authors":"Dana Kassem , Giulia Zane , Eustace Uzor","doi":"10.1016/j.eneco.2025.109098","DOIUrl":"10.1016/j.eneco.2025.109098","url":null,"abstract":"<div><div>Access to electricity remains a central priority in development policy, particularly in Sub-Saharan Africa (SSA), which accounts for over half of the global population without reliable power. This study examines the socio-economic impacts of Kenya’s Last Mile Connectivity Project (LMCP), a large-scale electrification initiative aimed at expanding grid access by connecting households and businesses within 600 meters of distribution transformers. Using a spatial regression discontinuity design, we evaluate the program’s effectiveness in increasing electricity access and its broader development outcomes. Our findings show that the LMCP significantly improved household connectivity, leading to a substantial shift from off-grid energy sources to grid electricity. While this transition resulted in modest yet positive economic effects, most notably, increased household consumption, there was no significant impact on employment, income, or women’s empowerment. These limited economic gains appear to stem from persistent challenges such as unreliable power supply and financial constraints that hinder productive electricity use. Interestingly, we find that the positive impact of LMCP on consumption is driven by households connected earlier, suggesting that the impact of the program might increase over time. While our results highlight the role of electrification in improving living conditions, they also suggest that access alone may not be sufficient to drive broader economic transformation, and benefits take time to accrue.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"154 ","pages":"Article 109098"},"PeriodicalIF":14.2,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145962437","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy EconomicsPub Date : 2026-02-01Epub Date: 2025-11-13DOI: 10.1016/j.eneco.2025.109045
Huijoo Shon, Heerae Lee
{"title":"The role of household and community infrastructures in mitigating energy poverty in Africa: Between and within urban and rural areas","authors":"Huijoo Shon, Heerae Lee","doi":"10.1016/j.eneco.2025.109045","DOIUrl":"10.1016/j.eneco.2025.109045","url":null,"abstract":"<div><div>Energy poverty persists as a critical challenge across African countries, and infrastructural conditions have become important in mitigating its severity. This study examines associations between energy poverty and infrastructures at the household and community levels in 28 African countries. We construct multidimensional energy poverty (MEP) and infrastructure indices and visualize their spatial patterns using a Bayesian hierarchical model. Regression models estimate the effects of multilevel infrastructure conditions on household MEP. To account for variation in infrastructure–MEP relationships across urbanizing contexts, we conduct subgroup analyses across four settlement types: large cities, small and medium-sized cities, rural towns, and rural villages. Spatial analysis shows substantial disparities in MEP that align closely with patterns of infrastructure conditions. Regression results reveal that higher levels of household and community infrastructures are associated with lower MEP, and the relationship is stronger for community infrastructure. The magnitude of these associations varies across settlement types. Community infrastructure has a larger effect on MEP in rural towns and villages, whereas household infrastructure has a larger effect on MEP in large cities. In small and medium-sized cities, the effect sizes of household and community infrastructures are comparable. Nighttime light intensity used as a proxy for broader electrification environments is also associated with lower MEP. These findings suggest that multilevel infrastructures are critical for alleviating energy poverty, and their roles differ across settlement contexts. Policy implications include the importance of cross-sectoral infrastructure planning responsive to settlement conditions, with particular attention to marginalized populations across urbanizing and rural areas.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"154 ","pages":"Article 109045"},"PeriodicalIF":14.2,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145531157","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}