Understanding the impacts of ecological compensation policies on energy poverty: insights from forest communities in Zhejiang, China

Ecological compensation policies (ECPs) designed to promote sustainable resource usage have seen widespread implementation. However, the intricate interplay between such policies, rural livelihoods, and residential energy consumption within the socioecological system (SES) remains underexplored. Based on household data from forest communities in Zhejiang, China, this study investigates the impact of a forest ECP on local household energy poverty through the mediating effect of household livelihood and energy consumption structure. The results reveal a significant reduction in the risk of energy poverty attributable to the policy. This effect is mediated by the improvement in household livelihood outcomes and the modernization of energy consumption patterns, both individually and collectively following the implementation of the policy. Such impacts vary across regions and population groups. We recommend improving support systems and fostering livelihoods and energy transitions to achieve long-term sustainable goals.