Alleviating the rural household energy poverty in China: The role of digital economy

Abstract

Energy poverty represents a considerable challenge to resilient development, severely affecting the well-being of rural households. Against this backdrop, evaluating the contribution of the digital economy in alleviating this issue in the current digital era is important to highlight. This research utilizes comprehensive datasets from the China Health and Retirement Longitudinal Study (CHARLS) for the years including 2011, 2013, 2015, and 2018. We utilize a multi-period Difference-in-Differences (DID) model, along with supplementary econometric methods, to analyze the influence of the digital economy (DE) on rural household energy poverty (RHEP), focusing on the “Broadband China” initiative as a pivotal shock. The results indicate that: (1) DE proves effective in mitigating RHEP, and the robustness of this conclusion is affirmed through various tests. (2) An analysis within the Technology-Organization-Environment (TOE) framework reveals that green technologies and government organizational capacity are significant mediators that enhance the role of DE, while the market environment has yet to demonstrate a similar capacity. (3) The influence of DE on reducing energy poverty reveals heterogeneity with respect to geographical location, environmental regulations, resource endowment, and development levels. (4) The positive impact of the DE on alleviating energy poverty diminishes as the severity of energy poverty enhances among rural households. In summary, this research contributes valuable insights to existing literature and provides a theoretical and practical framework for addressing RHEP in other underdeveloped countries.