Does the urban–rural income gap matter for rural energy poverty?
Yi‐Shuai Ren, Xianhua Kuang, Tony Klein
Abstract
As an integral part of China's national strategy, the Rural Revitalization Strategy has become a top priority in China's economic and social development since 2018. Closing the income gap between urban and rural residents and reducing rural energy poverty are essential for achieving the Rural Revitalization Strategy's primary objectives. Therefore, based on sample data from 30 provinces collected between 2005 and 2015, this study employs a two-way fixed-effects model and conducts an asymmetry analysis to test the influence of the urban–rural income gap and financial development on rural energy poverty and analyze whether the urban–rural income gap can exacerbate rural energy poverty in China. The results show that (1) rural energy poverty is positively correlated with the urban–rural income gap, (2) there is a positive correlation between financial development and rural energy poverty, and (3) different quantiles of the urban–rural income gap and financial development are asymmetrically connected with rural energy poverty. Finally, we present policy proposals for promoting rural revitalization and enhancing the availability of rural financial services.