Improving energy-related efficiency towards SDG7 in China: What role does energy poverty play?

ABSTRACT

The improvement of energy-related efficiency has promoted energy-sustainable development in China; however, it may be inhibited by energy poverty. This paper constructs an index system to measure China's energy poverty. Subsequently, we evaluate energy-related efficiency towards SDG7 comprised of energy production efficiency and energy sustainable utilization efficiency using a dynamic two-stage data envelopment analysis model. Furthermore, we adopt fixed effect models to quantify the impact of energy poverty on improving energy-related efficiency and the underlying mechanism. The findings indicate that (1) China's energy poverty situation gradually improves from 2011 to 2020. The energy-related system's performance is medium due to the poor performance in its energy production stage in 30 provinces during 2011-2020. Energy-related efficiency is greater in areas with a higher response to SDG7. (2) The impact of energy poverty on improving energy-related efficiency is significantly negative. Addressing energy poverty significantly improves energy-related efficiency in regions characterized by a high energy poverty index and low energy-related efficiency. However, it bears no impact in regions with a low energy poverty index and high energy-related efficiency. (3) The moderating effect of technological innovation effectively improves energy-related efficiency, whereas the marketization level has an inverse effect. Consequently, this paper suggests several policy implications.