Article 2025 · 3 citations

Indirect impact of public expenditures and inflation on energy poverty: empirical evidence from 32 developing countries

Abstract

Energy poverty (EP) is an important barrier to environmental sustainability, and many studies have addressed its causes and linkages with various macroeconomic variables. However, there has been insufficient analysis of the indirect effects of public expenditures and inflation on EP, particularly through income. This study analyses the effects of public expenditures and inflation on EP for 32 developing countries using Panel GMM and 3SLS methods. The findings indicate that public expenditures are an important public policy instrument in combating EP. Conversely, the study reveals that inflation negatively affects energy poverty. Moreover, the study concludes that there is a U-shaped relationship between inflation and income inequality and that a decline in inflation over time will positively affect EP through income inequality.

Keywords

Environmental sustainability public expenditure Inflation energy poverty developing countries Q01 P35 P42 O13 F63 INCOME INEQUALITY ECONOMIC-GROWTH FUEL POVERTY GOVERNMENT SIZE CO2 EMISSIONS INDICATORS POLICIES CONSUMPTION TRANSITION EFFICIENCY

WoS Categories

Economics

Sustainable Development Goals

Sustainable Cities and Communities Industry, Innovation and Infrastructure Affordable and Clean Energy Climate Action

Citation

Journal: APPLIED ECONOMICS
Year: 2025
Volume: 57
Issue: 7
Pages: 805-822
ISSN: 0003-6846
eISSN: 1466-4283
DOI: 10.1080/00036846.2024.2423901
WoS UID: WOS:001353128100001

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