This study aims to shed light on the determinants of energy poverty by examining the role of financial development. Notably, the study analyses the multidimensional effects of financial development (including two subsectors and three dimensions on five indicators of energy poverty). Various estimates are applied with a global sample of 65 economies, consisting of 36 low- and lower-middle-income economies and 29 upper-middle-income economies for 2002-2015. First, financial development can alleviate energy poverty. Second, the results are properly consistent across the two subsectors and three dimensions. Third, the two subsectors and three dimensions of financial development are found to reduce energy poverty in low- and lower-middle-income economies but have heteroscedastic effects in upper-middle-income economies.
Keywords: Clean fuels and technologies; Electricity access; Electricity efficiency; Energy poverty; Financial development; Renewable electricity.
© 2021. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.