Understanding the energy poverty in China: chronic measurement and the effect of the digital economy

Energy poverty is simultaneously multidimensional and dynamic, and its eradication is consistent with the requirements of sustainable development. The methodology integrates the “double-cut-off” approach and the “duration analysis” approach to develop the chronic multidimensional energy poverty index (CMEPI) and instrumental variables (IV) method is utilized to check the role of the digital economy in poverty alleviation. Results are based on data from the China Health and Retirement Longitudinal Study (CHARLS) from 2011 to 2018. The major findings show that 64.243% of households suffer from chronic multidimensional energy poverty (CMEP) deprivation, with the affordability indicator contributing the most, followed by using traditional energy for cooking. Secondly, CMEP exhibits evident characteristics of household, individual, and regional heterogeneity, which occurs mostly in households with members who have low education, work in agriculture, have more children, and live in rural areas. Finally, the development of the digital economy has a significant positive effect on lifting households out of CMEP, especially for households that have been in poverty for a longer period of time. Moreover, this positive poverty reduction effect is mainly achieved through the promotion of green technology innovation, the enhancement of environmental awareness, and the development of urbanization. These outcomes will assist the policymakers who aim to eradicate energy poverty.