Haunted by the past: Exploring the micro-level effects of childhood economic shocks on energy poverty in developing countries

Concerns about the detrimental impacts of energy poverty are currently on top global agendas and have pushed academia and policymakers into understanding its causes. However, studies on these causes usually account for factors that contemporaneously explain energy poverty as they fail to consider past experiences. In resolving this issue, this study uses the World Bank's Skills Towards Employability and Productivity (STEP) survey to examine the impact of childhood economic shocks on adulthood energy poverty in selected developing countries. Applying the fractional regression technique alongside other robust methods, we find that the probability of being energy-poor when one experiences childhood economic shocks ranges between 2.3 % and 44 %. Via a mediating variable analysis, we find life satisfaction, earnings, and financial inclusion to mediate the association between childhood economic shocks and energy poverty. The study further shows that the effect of these early life economic adversities on energy poverty is more pronounced in lower-middle-income countries and among males. Therefore, we recommend using cash transfers and other early life intervention programs for children to help redress the potential dangers these economic shocks can unleash in their future.