Does household electrification alleviate energy poverty? Empirical evidence from China

In the context of carbon neutrality goals, mitigating energy poverty presents a certain level of complexity. This study employs Prospect Theory to analyze the impact of household electrification on energy poverty. It tests the non-linear relationship between household electrification and energy poverty using Oprobit models, Robin Hood algorithm and Regression Discontinuity Design. Besides, the mediating effect of energy efficiency and employment rate, and the moderating effect of family cohabitation are verified. The results show that there is an inverted U-shaped relationship between household electrification and energy poverty. Furthermore, urban households and those using old furniture experience a stronger increase in energy poverty in the early stages of electrification, while households in areas with long heating degree days experience an increase in energy poverty in the later stages of electrification. Household electrification impacts on energy poverty through energy efficiency and alleviates energy poverty by promote employment rate. Additionally, the higher the degree of family cohabitation, the more it can alleviate the exacerbating effect of household electrification on energy poverty.