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<p>Energy poverty is a widespread issue with profound relevance for household welfare, yet its influence on household consumption upgrading remains underexplored. Drawing on scarcity theory, this study utilizes panel data from the 2014, 2016, and 2018 waves of the China Family Panel Studies (CFPS) and applies a two-way fixed effects model to examine the influence of energy poverty on household consumption upgrading. The results show that: (1) Energy poverty significantly hinders both consumption level upgrading and hedonistic consumption structure upgrading, while unexpectedly promoting developmental consumption structure upgrading. The results still hold after multiple robustness checks. (2) The heterogeneity test reveals that energy poverty’s effects differ markedly across income groups, household head age, geographic regions, and the urban–rural divide, indicating that access to external resources mediates the relationship. These findings offer important policy insights. They suggest that targeted energy policies and support for renewable energy infrastructure in impoverished regions can alleviate the negative consequences of energy deprivation and foster developmental-oriented consumption. Such measures are essential to promote household well-being and support broader goals of sustainable economic development.</p>

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Energy poverty and household consumption upgrading: evidence from the China family panel studies

  • 期刊论文

  • 发表日期：

    2025年9月26日

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  • Hongying Lin,
  • Ya-Lan Liu

摘要

Energy poverty is a widespread issue with profound relevance for household welfare, yet its influence on household consumption upgrading remains underexplored. Drawing on scarcity theory, this study utilizes panel data from the 2014, 2016, and 2018 waves of the China Family Panel Studies (CFPS) and applies a two-way fixed effects model to examine the influence of energy poverty on household consumption upgrading. The results show that: (1) Energy poverty significantly hinders both consumption level upgrading and hedonistic consumption structure upgrading, while unexpectedly promoting developmental consumption structure upgrading. The results still hold after multiple robustness checks. (2) The heterogeneity test reveals that energy poverty’s effects differ markedly across income groups, household head age, geographic regions, and the urban–rural divide, indicating that access to external resources mediates the relationship. These findings offer important policy insights. They suggest that targeted energy policies and support for renewable energy infrastructure in impoverished regions can alleviate the negative consequences of energy deprivation and foster developmental-oriented consumption. Such measures are essential to promote household well-being and support broader goals of sustainable economic development.